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FCMS EDUCATIONAL BOOKLETS
Money Saving Tips
Goals Toward Financial Freedom
Creating and implementing a household budget is the first step towards financial freedom. When you develop a budget, you should consider contribution to a savings, investment or retirement account as one of your expenses. Generally, you should plan to save at least 10% of your income, before you pay your expenses. (To make saving easier, think of paying yourself like paying for any other debt you owe.)
Savings goals should be a part of a properly designed budget. You should make plans to save for your periodic expenses: vacation, Christmas funds and emergencies. First evaluate your budget. Your periodic expenses are those you may not have every month, but when they come due they will cause your budget to become unbalanced. An example would be car insurance. Set a goal to save a certain dollar amount monthly for a bill due every six months and you will not have to scramble for extra funds.
Check with your bank to see if they offer vacation or Christmas clubs. Perhaps you can have savings deducted from your paycheck each payday.
Change Your Habits
Don't "nickel & dime" yourself to death! You must change your spending habits before you can save. Expenses can be cut in most areas to allow more room for savings.
Vehicle Expenses
- Plan your trips. Perform errands at once instead of making several different trips.
- Use public transportation or car pool.
- If you commute, ask your employer about flex-time. Also, explore work-from-home options a few days a week.
Utilities
- Investigate budget billing to avoid unexpectedly high bills in the hottest or coolest months of the year.
- Do you have long distance on your phone plan? Consider canceling it and getting a phone card. Wal-Mart currently sells these cards for approximately 3 cents a minute.
- Go to a basic plan for your cable television package.
- Install a programmable thermostat. Lowering your home's temperature, while you are away from home or sleeping, will save money.
Childcare
- Check for employer or church sponsored day care.
- Evaluate all expenses to make sure two people working makes economic sense.
- Ask your employer for evening hours if your spouse works during the day.
Food
- Write your grocery list and stick to it. Always go grocery shopping on a full stomach. This limits impulse buys.
- Avoid ATM fees by taking cash advances with your grocery purchases. Most grocery stores don't charge ATM fees.
- Go online to search for coupons for your favorite grocery store or try Kroger.com or couponorganizer.com.
- Limit the number of times you dine-out and use coupons when you do.
- Consider generic foods: all you are paying for is the label.
- Grow a garden.
- Shop at warehouse clubs. There are Sam's Club and Costco stores located nationwide.
Housing Expenses
- Consider renting out an extra room in your home or finding a roommate.
- A reverse mortgage may be worth considering if you are 62 years of age or older.
Clothing
- Shop resale stores for high-quality little worn business attire. Also, try off-price clothing stores such as T.J. Maxx or Marshalls.
- Line dry as many items as you can to avoid using the dryer. Avoid purchasing clothing that must be dry-cleaned.
Alternative Ways to Save
- Shop around for the lowest bid on homeowners and car insurance. By changing companies you could save hundreds.
- Search for the best rate on your savings account, interest can really add up!
- Ask your children to help. Limit expensive school activities to one per child. Teenagers can contribute earnings for a family vacation.
- Use the generic version of prescription drugs.
- Shop-around, look for the best price at www.pricegrabber.com or www.mysimon.com.
- Visit www.dealtech.com to find coupons for anything in your life from dining out, to clothes and electronics.
Making a few of these changes can easily free enough income for you to start saving each month.
When You Cannot Afford to Save
It is difficult to save when you are in debt or have a limited income. Remember, even if you are saving "change" you are making progress. Start small with maybe $10.00 a month. That will translate into $120.00 by the end of the year. You can increase your savings when you payoff a debt. Use a tax refund as a savings cushion. When you keep your mind open to accomplishing your goals, anything is possible.
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