Are you looking to save money for your family? Many families today are just trying to tread water when it comes to paying the bills and staying out of debt. Who has extra money to actually put into the bank? Well, when you put your mind to something, you might be surprised how much you can accomplish, especially when it comes to savings money.
Two Steps to Saving Money
If you truly are committed to saving money for your family, there are just two things that you need to focus on. You must reduce your costs and you must learn to grow your money once you’ve got some stashed away in savings.
Reducing Costs
This can be a tall order because many of us already feel like we’re pinching pennies as it is. But, no matter how tight you think you are with money, there are always ways to spend less than you are now.
- Second Hand Stores – When is the last time you stepped foot in a second hand store to make a purchase? If buying second hand clothing weirds you out, I understand, but there are plenty of other things that you can save money on by buying it second hand. If your chair breaks and you have nothing left to sit on, I bet you can find a perfectly reliable one at the second hand store. It might not match perfectly with your décor, but it will allow you to save money for your family.
- No more restaurants – Going out to eat is fun, but man is it expensive! I just made pasta for myself at home for $1.50. Do you know what this would cost you at a family restaurant? Probably at least $8 if not more! Avoid those restaurants and buy your food from the grocery store.
Grow Your Money
After you save enough money, you might start to wonder what you should do with it. If you don’t have an emergency fund, that would be your first option. When things go wrong in life like your water heater breaking down or your vehicle needing a new transmission, it’s definitely a good idea to have the money on hand for these unknown expenses. In order to cover these costs, you need to be sure that your money is easily accessible. This means that some of it should probably go into a standard savings account, another portion of it could go into a check-writing CD, and still some more might go into an ISA which is simply an individual savings account. If you’re in the United Kingdom, you should note that ISAs are really handy in the UK, and they make a great place to put a portion of your emergency funds.
Once you have your emergency account funded, then it’s really time to start growing your money. Instead of earning a couple of percent interest here and there, you could invest your additional money into your own business or into another venture that could net you 10% or more on your investment. The riskier the investment, typically the more return you might expect. Have caution with those risky investments though. Many times they just don’t pan out.
It’s simple, but true. What do you think?
