April 02, 2013

The Secret to Saving Money with Little to No Extra Cash

Saving money is the key to financial security for anyone who is hoping to get in control of their finances. When you rarely have any extra money, however, it can be difficult to save an emergency fund, much less for retirement or a college education. Try these tips to save some money.

Start by saving a percentage of what’s left in your checking account the day before payday. Many people pay all their bills as soon as they get their paycheck, and then spend the money that is left over until their next paycheck. If this sounds like you, spend like you normally would while waiting until the day before you get paid. Then, transfer a portion of what is left in your checking account to your savings account. Many people choose to start by transferring ten percent, then increasing this percentage every month as they become more comfortable with the method.

This will let you continue your spending habits without making any cuts, but you’ll be able to save a lot more. By not transferring everything, you’ll leave yourself enough money to make larger purchase without having to dip into your savings account. Many people who use this method discover that they save only small amounts for the first several months, but that they develop a good habit that develops into them saving hundreds of dollars a month.

In addition to this, save half every time you get any extra money. If you have a job where you get a bonus or other “extra” compensation, then put aside at least half of each of these checks. Because this is money that you haven’t budgeted for, it is a lot easier to save. By spending half of the amount, you won’t feel like you’re being deprived. If you don’t earn bonuses or overtime, think about ways you can earn extra money. Pick up a second job or make and sell items at craft shows.

Finally, put your spare change aside. Every night, empty your pockets or wallets and put the spare change into a small jar. When the jar is full, take it to your bank and have it deposited into your savings account. While this method will not allow you to save large amounts of money, it can be a good way to put something aside. In fact, many people are surprised by how much they can accumulate within a few months.

Author Bio: Hayley is a freelance blogger. Looking to rebuild your credit? Visit the credit repair specialists at http://www.lexingtonlaw.com/credit-education/credit-repair-service/. For more financial advice, visit http://money.cnn.com

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