Build Your Savings Account – Make More, Spend Less

Build Your Savings Account – Make More, Spend Less

 

How to Save More MoneyHi Rich Mama – today we’re going back to the basics of financial planning.  It’s all about step one of your defensive plan for building a wealthy family. You have to save. You will never become wealthy – no matter how much you make – unless you are saving money! But so few actually have a regular plan for saving. That old adage that those who fail to plan, plan to fail, is never more true than where money is concerned.

 

Without a solid savings plan, chances are, you’ll never have enough money on hand to provide for your family in the event of a financial set-back. Reaching long-term financial dreams such as a secure retirement also depend on a savings plan.

 

The best way to protect your family from financial disasters is to have a plan in place to prepare for the future. Building a savings account requires learning to make more money and live on less. These two strategies will go far toward ensuring that – heaven forbid – a financial disaster strikes. Your family will be able to survive and more easily bounce back from the hardship with a firmly established savings account. A savings account will help you sleep better at night – much better than a garage worth of junk or a closet worth of shoes.

 

Let’s look at these two strategies that will help you build a savings account, and build financial security in the doing:

 

Make more money.

 

You can try and earn some extra money and put that in your savings account. Spend the rest of your money guilt free. If both you and your spouse work, this is a great test to see what would happen if one of you quit (or lost) your job. Try living only on one income.

If you’re already a one income family, you can try and earn a bit extra on the side and devote this to saving.

You can start a home-based business offering services such as lawn care, babysitting, tax preparation, sewing, baking, music lessons, or anything else you can do reasonably well. Start by talking to your friends, family, and neighbors about your new venture, then branch out when you get your business firmly established. DO NOT SPEND A LOT OF MONEY STARTING THIS BUSINESS. If your start small and only earn a hundred or two hundred bucks a month that you SAVE – pat yourself on the back.

If you like to sell, you can sign up with any number of direct sales companies. Some familiar ones are Avon, Stella and Dot,  Home Interiors, and Arbonne, just to name a few. There are hundreds more with products ranging from baby toys and books to weight loss assistance. Choose something you like, and that you believe in, and give it your best shot. Avoiding ones that have you buy a lot of inventory upfront.

 

Selling your own products or unwanted items is another way to make more money. If, like most of us, you have a garage, basement, or closets full of things you no longer want or need, turn those items into cash. Declutter your life and build a savings account at the same time. Explore online auction sites for ideas about what people are looking for and get on the bandwagon. Or just have a good old fashioned yard sale and make a commitment to put that money into your savings account.

 

You may enjoy crafting. Could you build an inventory and take those items to a local art fair or flea market? Perhaps setting up an online store would be more to your liking – try Etsy.com so you don’t have to go through the hassle of building a website from scratch.  As much as you enjoy creating things, there are even more people who enjoy buying things. Why not sell them YOUR things?

 

Spend less money.

 

Make spending less money a habit, even a challenge. See how many outfits you can make out of the clothes in the back of your closet; see how many meals you can get out of one whole chicken, etc. Put the money you would have normally spent into a savings account. Avoid eating out. One less take out dinner a week could mean a hundred dollars or more a month in your pocket – I mean savings account.

 

Coupons are an easy way to track how much money you save when you shop. Take the amount on the coupon and physically deposit that amount into a regular savings account. Nickels and dimes can add up quickly when this is done consistently.

 

Keep a small notebook and track every cent you spend. Within a week, you’ll notice a pattern of unnecessary expenditures. Eliminate that gourmet coffee on the way to work and replace it with a home-brewed alternative. Fill a reusable bottle with filtered water out of your own tap instead of buying bottled water. Make your lunch at home. Whatever you save over the weeks, take that money and stick it into your savings account.

 

Eliminate luxuries in order to build your savings even faster. Find a cheaper hair salon, go a little longer between cuts. Do you own nails.  Go to the library for books and moves.

Whatever you choose to do, however you choose to save, start today. Put aside a little money from every paycheck, spend less, and earn more so you can build a savings account to protect your family in the event of a financial disaster. You need a buffer against layoff, recession, depression, or long-term illness to ensure your family’s security.

Back to School Shopping With a Picky Teen

Top Tips for Back-to-School Shopping with a Picky Teen

It’s that time of year again – back to school  And with the little kids, while you can certainly make most of the choices for them, it gets harder and harder to do that as they get older. Teens are picky – and back to school shopping time can be fraught with hard to stomach stuff.  Here are some tips for back-to-school shopping with your picky teen.

Let Them Shop

This doesn’t mean you should give your teen you credit card and drop him or her off at the mall for a few hours! Actually, there is a method to letting your picky teen do his or her own back-to-school shopping, and it can be a positive learning process. Here’s how it works.

Go Through Their Things

With your teen, go through her clothes and determine what she really needs. Get rid of only those clothes that can’t be repaired or are stained permanently, then work on mixing and matching what’s left. Then determine what clothes she needs and make a specific list.

Budget

Once you both understand what’s necessary, you can make a budget for those items. Determine what you are willing to pay for each piece of clothing, total it up, and then give your teen the money. Once it’s spent, no more – be firm on this one! You may want to accompany her on this shopping trip to help point out bargains and such, but the point is, she is in charge of planning her purchases and spending the money.

Good Lessons

While you’re doing all this, think of the good life lessons you’ll be teaching your teen. Your teen will learn how to budget his money, and will get a no-frills introduction into the world of financial planning. Remember, once the money is gone, he is not getting any more, so he will have to plan out how he is going to divide up the money to get all the items he wants. Your teen may also be motivated to shop for things on sale or things at second-hand shops once he realizes how much the things he wants actually cost.

Consider letting your teen keep any money that’s left, too. Having a little extra spending money can be a great motivator to find bargains!

Go for Re-Sale

Even picky teens can usually find something at a consignment shop or second-hand store. Name brands are not necessarily hard to come by at these places, and if your teen has a flare for individuality, she might be able to put together a stunning outfit with second-hand clothes and accessories.