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photo by steed media service
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Are your monthly bills preventing you from saving money? Are you
stressed about not having enough money for retirement? Enough is
enough. It’s time for you to stop waiting to win the lottery, get a
better job, or pay off a credit card before you invest in your future.
You must deal with the unpleasant truth that your savings account is
vexed by your lack of discipline.
The recommendation to “pay yourself first” may seem like a cliché but
it’s the gospel in terms of advice. Funding your savings account is
just as important as paying your mortgage, car payment and student
loans. Wouldn’t it be nice to be able to deposit 5 to 10 percent of
every paycheck into your savings? It’s doable, but you must change your
habits.
According to a survey conducted by HSBC Bank, people from all income
levels are victims of the savings struggle. “Savings requires more
discipline than we may realize, regardless of household income,” shares
Kevin Martin, a senior vice president for HSBC Bank in the U.S. “The
data revealed recurring bills get in the way of saving for the majority
of households at both ends of the income spectrum.” The need to pay
everyday bills was the recurring theme among those surveyed as to why
they couldn’t save. Further, 34 percent of them earned more than
$250,000.
Paying off credit cards is imperative, because it’s insane to pay
interest on things that don’t appreciate in value. So guess what? That
50” flat-screen television and those Christian Louboutin pumps will
have to wait until you have the cash to pay for them. The only card
you’re allowed to use is the traditional American Express — the one
that must be paid in full each month. Place those other credit cards in
the freezer to cool off if they’re burning a hole in your pocket.
Lastly, when you’re making a purchase, determine immediately if what
you’re buying is indispensable. You’ve worked hard for your paycheck,
so it’s wise to invest it in places where there’s some form of return.
The truth is money is a commodity that was designed to circulate; so
make sure yours acts more like a boomerang than a Frisbee. – yvette caslin
Here are 10 quick tips to get you on the fast track to saving:
1. Live by a budget; it’s your road map.
2. Avoid consumerism by distinguishing your needs from your wants.
3. Don’t make purchases impulsively.
4. Wash your own car.
5. Cook at home three times a week and take your lunch to work every day.
6. Max out your IRA every year so you don’t give the IRS more than they’re supposed to have.
7. When you use your credit card, think of the true cost: interest.
8. Don’t go grocery shopping without a list.
9. Join an investment club.
10. Never give up; your patience will be rewarded with financial security.
Trying to get your financial house in order?
Log onto rollingout.com/finance
