Why Saving Small Amounts Of Money Does Count

[JanH]

Re: Why Saving Small Amounts Of Money Does Count

I'm finally getting the picture, too. We nickeled and dimed ourselves into this cos when we had the big items, we didn't have the money saved for them. We didn't spend a ton on a house, more expensive cars, or lots of furniture so we congratulated ourselves on our spending. All the while, not watching the small stuff adding up til you can't pay outright for insurances, medical bills, colleges, autos, or even house repairs. It was a shock how much it matters. We have definitely changed our mindset, but it is a long road to recovery.

[Aleta]

Re: Why Saving Small Amounts Of Money Does Count

I heard it said that we try to save on the big items when it's the everyday consumable stuff that we should be saving on. If I can save 20% on the toothpaste, That's a great savings.

[disneysaver]

I woke up one day about 3 years ago and realized I really needed to straighten my finances out - I had credit card debt as long as I could remember and gradually it got to be higher and higher. I started a 2 1/2 year "spending freeze". I paid as much as I could on my debt. Every raise, tax return etc. went to the debt. Luckily I was able to consolidate it all on one CC with a 2.99% interest rate (that helped a LOT). At the same time I also started sending $10.00 every Friday to my ING account. I eventually upped it to $20.00 every Friday. Fast forward to now, three years later. All debt is paid off and I actually have $8K in my emergency fund (not in ING anymore, went to GMAC for higher interest). I don't think I've every felt better about anything - it's just a great feeling to actually be able to save money. I even bought 3 CD's (never had enough to buy one before).

One thing I know for sure is that if I can do it, anyone can!

[banned]

Savings Accounts

I'm new here - I'm sure most of you already know this, but a good way to make money on the cash you've saved is to put it into an online savings account like ING Direct or Emigrant Savings. I believe ING Direct still has an offer if you set up an account, they'll add $25 to it. The interest rate right now is around 4.50% and you can access your money when you need it. The interest adds up fast.

[Aleta]

I had never had an online bank until ING Direct. I did so because of this forum and it was such a possitive experience that it encouraged me to do other online banking. ING is easier than most onliners.

I started my $20. savings challenge there. I had money all over the house that I added to my account. It is easier than you think. Jeffrey has encouraged us to take $20. and find a way to make more money out of it. In the begining, it might be to make interest with it. Later on, it could be buying material and making something to be sold.

The $20. savings challenge has definitely expanded my thinking in many directions.

[Ima saver]

Yes, I work on the $20 challenge everyday and it has helped a lot!

[Ima saver]

Saving small sums each day has added up to almost $20,000 saved for me so far this year. That does not even count the interest that I have earned this year.

[sandyandry]

Article is very nice. I save 10% of income so that it will help me in my bad times.

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Expense tracking

[Ima saver]

I have always saved 10% of my income and I do not count that in the $20 challenge. That is just extra savings that I do.

[msnln]

Another fact that needs consideration is taxes. In order to keep $15, you need to make $20 if you are at 25% federal tax rate. If you calculate state, city taxes, or if your federal rate is higher, you will need to make more. Your pay is usually quoted in before tax terms but your spending is after tax money. I always think about how much more I need to work to make up the dollars spent before spending hard earned after tax money.

[shidney]

The feeling is good when I come across such boards and reading the views of others who save obligatorily for the unforeseen days. As a strict principle I also happen to save 10% of my earnings in various SIPs. But there is one problem to which I can do well with your advices.
The rise in costs of essential commodities has been a huge pressure on the purse strings and am on a situation where the expenses are increasing like anything making savings a big problem. Though I am still managing it so far but things have become worrisome.
In case the need for money is urgent we have got to break the savings and with it goes all our efforts too. Any suggestions to tackle the situation keeping the savings intact.