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 a major home expense such as bathroom remodeling in Washington Township (or elsewhere), it’s reassuring to have the money on hand for these unknown expenses. To cover these types of costs, make sure your funds are easily accessible. This might mean putting some money in a standard savings account, some in a check-writing CD, and another portion in an ISA, which is an individual savings account. For those in the United Kingdom, ISAs can be particularly useful for emergency savings and provide a secure place to park a portion of your funds.
Once your emergency account is funded, then it’s time to start growing your money. Instead of earning a couple of percent interest here and there, consider investing your additional money into a venture that could potentially offer a higher return, like 10% or more. This could be anything from starting your own business to supporting a promising project or even diversifying into real estate. The riskier the investment, typically the higher the return you might expect. But proceed with caution—risky investments can sometimes fall short.
It’s simple, but true. What do you think?
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