3 Ways to Build your Cash Reserves
If getting in good financial standing is on your to-do list in 2010, you’re not alone. Millions of Americans are looking to save more in the wake of the financial crisis. See how you can get started.
1) Get Real
Often the hardest thing about delving into your finances is actually getting started. It’s daunting to take a long hard look at what you have and what you don’t. But, if you’re going to start saving, you need to get real. And that entails pulling your head out of the sand.
Consider using an online tool such as Mint.com, as it’s a great resource for putting your financial status in perspective with easy-to-read pie charts and graphs. Once you’re a member (it’s free!) you’ll be able to track your bills, spending and saving patterns.
2) Assess your Needs and Wants
Once your finances are organized, you can really assess where your money is going. Eliminate frivolous spending where you can. For example, if you discover that you spend $75.00 a week on lunch, resolve to cut that number in half by bringing your lunch a couple of times a week.
Another place to look is at your bills. Many people don’t realize they can lower their bills with a quick phone call. Contact your cable company, car insurer or Internet provider and see if they’re offering any specials. Saving $20 a month on just one bill nets you $240 a year!
3) Make Saving Automatic
The best way to save is to do it automatically, since it takes the pressure off of you to watch every cent that comes into and out of your hands. First, find out if your employer offers a retirement plan such as a 401K. If they match your savings up to a certain percentage, (usually 7%-9%), sign up to save the maximum. Not doing so is like throwing free money away!
Next, look into opening a high yield savings account. Create a savings plan where you allocate money from your checking account into this savings account every month. A good strategy is to have the account deduct money on payday, when your checking account has some padding.
With a high-yield savings account, you’re on your way to creating a healthy emergency fund. Once you’ve saved enough to cover four months of living expenses, think about investing your money elsewhere, such as in money market accounts, bonds, or a Roth IRA.
5 Ways to Spend Less this Holiday Season
It doesn’t matter who you are or where you live: budgets are tight all over this holiday season. This year, we’re asking you to rethink the way you give. The result? More cash for emergencies and a happy, fun, and meaningful holiday season.
1) Spend Time, Not Cash
You’ve heard the saying, time is money. This season, instead of spending money on the people you love, see is there’s anything you can do for them. Maybe you’re harried sister-in-law would love an afternoon away from the kids and you can put those old babysitting skills to use. Offer to drive an elderly neighbor on errands or watch your friend’s cat while she’s out of town. Giving up your time to others who need it this time of year is truly a priceless gift!
2) Go Green
There’s a reason why plants make excellent gifts: everybody loves them! Assembly line gifts are the way to go for people with a ton of family and friends. Buy some simple pots at a nursery or thrift store, a bag of soil, and some bulbs. Attach a note to each pot explaining how to care for the plant. Simple and beautiful!
3) Concentrate on Fun
Since when did gift giving have to be so serious and competitive? This year engage in a “White Elephant” gift exchange where each person brings one or a few inexpensive, wacky gifts. Label the gifts, draw numbers, and you’re off!
4) Get Together
Instead of buying a long list of gifts for all of your loved ones, why not throw a party instead? It’s much more fun to socialize with the people who matter rather than run around the mall looking for presents for them. It’s a good way to get everyone together, have some eggnog and catch up. If your entertainment budget stretched thin, throw a potluck instead.
5) Be Up Front
If buying presents just isn’t in the cards this year, it’s okay to tell people so without much explanation. A simple email or phone call saying you’re “opting out” of buying gifts this year will suffice. There’s no need to feel ashamed or guilty—practically everyone is in the same boat!
How do you plan to save this holiday season?
I Enjoy Planning
“I enjoy planning my spending and spending what I plan!”
Treasures Are Mine
“I am high on High Budget and its fabulous treasures are mine!”
My Life Is Rich
“My life is rich in fun and adventure!”
Abundance In My Life
“I have great abundance in my life and pplenty to share with others!.”
I Accept Rich Rewards
“I accept rich rewards - and I deserve them!.”
Relish The Commitments
“I relish the commitments I make and keep!.”
I Receive Tremendous Rewards
“I receive tremendous rewards every time I dial the phone!.”
Fabulous Money
“All my beautiful ships are bringing me fabulous money!.”
