Yes, You Can Save Money

Sometimes, saving money may seem almost impossible to do. You buy groceries on Monday, pay bills on Tuesday, and by Wednesday your paycheck has disappeared until you get paid again. And if you’re like most American families, you wait for “extra” cash to come in  so you can save it. However, by creating a budget or financial plan, most people find they can save some dollar amount regularly, and ultimately reach their long term financial goal.

When first starting, the amount of money you save is less important than the fact that you’re starting a habit to save regularly. It’s O.K. to start out small, even really small (say $5), but make the amount you decide to save each day, week, or month a commitment. You must continue to “pay yourself first” in order to get ahead in life. Begin with an amount that you are 100% sure you can live without so that you can continue building your habit on a sense of accomplishment. Giovanna Masci, money management expert at ACCION, suggests the following tips to establish a savings plan.

Create Wealth Without Risk

• Distinguish between wants and needs. Real needs are items that are necessary to sustain you and your family such as shelter, food, clothing, and transportation. All items that improve your family's quality of life, like new gadgets and eating out, are wants that could be eliminated from your budget.

• Set realistic and achievable savings goals. Most experts suggest you save 10 percent of your income into an "emergency fund" savings account. That's a great goal to build toward, but don't give up if you can't save that much at first. Establish a savings habit and save consistently. Doing the same thing consistently is better than putting aside a bigger sum of money just one time.
• Set up a separate savings account using automatic deposit. If you have always mingled your savings account and your checking account, you'll constantly dip into your savings and never pay it back when the next check comes in. If at all possible, have your employer deduct a set amount from your paycheck each pay period and deposit it directly into your savings account. After a little while it adds up to a chunk of change!
• Put your savings goals in writing. Writing down your savings goals can have a very positive impact on your habits. Writing things down makes your goal real and concrete. Be sure to write down your short, medium, and long term goals. Make sure the goals are attainable within a specified period of time that is realistic as well. Review your goals and your progress regularly.