Saving money

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How to Save $1,000 or more a year

The following are tips to help you put aside $1,000 or more in less than a year without too much effort or discomfort.

Don't let your money sit idle.

Make every dollar you own work for you.
To do that, you need to keep your money in interest-bearing accounts.
Check the minimum balances required to earn a certain rate of interest.
Ask yourself whether this specific amount fits your sitaution.
By doing this, you will avoid any unnecessary service charges, a lowering of interest, and even a negative interest rate.

Put your savings program on automatic pilot.
In other words, establish an automatic plan for savings such as a payroll deduction.
Money can be routinely deposited into your credit union share account or bank account.

Modest amounts of money can also be used to buy U.S. Government Savings Series EE Bonds monthly or bi-weekly.

These plans give you the advantage of saving regularly and not having to make a decision about all of the money coming into your household, because the decision about a particular sum has already been made.

Try to increase the amount you put aside when you get a raise.

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Prevent impulse buying.

This tip will help you to do just that!

Decide on an amount above which you (and others in your household) will not spend until you've discussed it at home.

If you still wish to purchase the items or service the next day, think seriously before going ahead.
To cut down on spending, follow this procedure for however long you feel it might be helpful.

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Examine your gift-giving style.

Gifts can be a large financial drain.
Some of us buy gifts we cannot afford either to keep up with other family members or to "buy" love and friendship.

Sometimes you just need to be firm and decide to spend less for a year or two or for whatever period it takes to put you on your desired financial path.

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Make do with what you have.

For example, keep your car one year longer.

Consider postponing any large purchase for one year or so.

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Pay yourself first

This means that you allocate a certain amount of savings as a fixed expense within your budget just as you make your mortgage or rent payment a fixed expense.

You will avoid monthly decision making, such as whether to spend or save that amount, because you have already made a decision to save it.

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Consider skipping costly luncheons.

Work related business lunches or other types of recreational lunches can become expensive.
For example, if you were to save $7.00 three times a week (the cost of an average luncheon) and you do that for 50 weeks, you would save $1,050 on this one item in your overall budget.

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Reduce food costs.

Use coupons when appropriate; avoid purchase of convenience foods; shop with a list at a specific time each week instead of on impulse; and compare prices at competing stores and select the best buys.

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Learn to say no to yourself

For example, cut back on daily "losses" while spending in dribs and draps on snacks, lunches, newspapers and magazines, phone calls, and other items bought without a plan and without thinking.

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Save any loose change you have left at the end of the day.

100 cents make up a dollar!
Your savings can add up to hundreds of dollars in a year.
For example, place your change at the end of every day in a special jar or special place.
If you just save $1.00 a day for a year you will have saved $365.
If there are two of you and, for example, you save $2.00 a day for a year, you would have saved $730 without much headache and sacrifice.

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To accumulate $1,000.00 in 1 year, save $80.65 a month at an annual interest rate of 6 percent.

[prosper]

I really commend you guys on your saving habits. They are very impressive. Currently, I save/invest about 13% of my gross.

[m1kesgurl]

21 & wants to save now

It is very hard for me to save anything.

I make about $2000 a month and after paying all of my bills, i have $935 left over and i just throw it all away with shopping. i am trying to give myself a plan on saving. can anyone give me some tips?

[Pitman]

I save about 33% of my pay (after taxes). I plan on saving more once I knock down a couple of bills.


Saving is a lifestyle

[disneysteve]

It is very hard for me to save anything.

I make about $2000 a month and after paying all of my bills, i have $935 left over and i just throw it all away with shopping. i am trying to give myself a plan on saving. can anyone give me some tips?

Welcome. May I suggest that you start a new thread. You'll get more and better responses that way.

If you have $935 left over each month, you shouldn't have any trouble at all with saving. That's a huge amount of free cash. Are you funding a Roth IRA? Do you have an adequate emergency fund? Are you debt free?

Start that new thread and tell us more details about your situation and there are plenty here who will be happy to give advice.

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Refinance Your Mortgage.

Consider doing this only if you plan to stay put long enough to recoup the cost. For example, a no-points refinance costs about $1,000 (application fees, lawyer, etc.)
Trading a 7%, $100,000, 30-year mortgage for a new loan charging only 6%saves $65.75 per month ($789 annually) and pays for itself in just 15 months. If you plan to stay put for at least 5 years, you'll probably save even more by paying some points and getting a lower interest rate.