All posts by Carlos Lawing

Creating Good Spending Habits

Put money in your savings or your emergency fund first. It’s easy to pay those personal loans first or think that you don’t have the cash to save, but by making this the first thing you pay each month, you won’t spend your money elsewhere. Try to have the bank automatically deduct 5%-10% of each paycheck and put it in mutual funds or another type of savings account you can’t access too easily.

Set money goals. If you’re just drifting along with no plan for your money, you are more likely to be living paycheck to paycheck, just because there is no clear reason to save. Set some goals, post them where you will see them, and give yourself a clear deadline. Check back on your goals at least a few times a year to see how you are doing.

Learn more. If you don’t know much about investments, financial terms, financial planning, or personal taxes, make it a priority to learn more. It doesn’t have to be dreary. Many banks host workshops and classes that teach you all you need to know for free.

What To Do If You Don’t Think You Have Cash to Save

Plenty of people think that they have no cash to save and they tell themselves that they will save “later”– when they make more money, when they pay down some of those cash loans, when they have more disposable income. The problem with this attitude is that “later” often does not come. The time to start a savings habit is now. The longer you put it off, the more you will lose in interest and savings.

If you’re telling yourself that you have no cash to save each month, start by creating a budget and by keeping track of all your expenses for one month. Try to identify those small expenses that you make which you don’t really love and wouldn’t really miss. The coffees you don’t drink and the dreary lunch meetings that drain you of cash can be converted into savings. The money you save doesn’t have to be huge. Even if you can save $50 a month by cutting out unneeded expenses that can make a big difference in paying off your personal loans and debts.

If you are really having a hard time trimming expenses, consider asking for a raise and putting the difference into a savings account. You’ll be living on the same amount you make now, sop you won’t miss any cash, but the extra cash each month can really build up your emergency fund or savings account.…

Savings

Often, it’s not the big ticket items that really set us back financially – it’s the small decisions we make on a daily basis that really add up. Consider: saving just $5 a day can add up to $1825 – enough to invest or put in an emergency fund. The more you save each day, the better shape your finances will be in. Here’s how to make better decisions each day. Make eating out a treat rather than a daily thing. Most of us grab a coffee on the way to work, eat at a cafeteria for lunch, and get take out from time to time. There’s nothing wrong with this, but it does really add up. Making your own lunch and coffee can mean big savings. Even eating out a few times a year at a fancy restaurant can cost less than daily meals and drinks you don’t really enjoy or even finish. Don’t buy food you’ll waste. Most of us buy food that gets tossed out. It’s throwing your money out! Stop the bad habit by having a small selection of meals you make regularly. This will ensure that you use up the same ingredients over and over, leaving nothing to go to waste. Look out for tiny expenses. The $1 for a paper or a gum makes no sense if you can read the paper online for free or can buy gum for $0.25 at the grocery store to carry with you. Do not pay for convenience. Plan ahead and save.…