Whether you’re getting out of debt or saving for retirement within a few years, it’s important that you track your income on a regular basis. You should also spend less than you earn and save money wherever you can. It is especially wise to have emergency savings since job losses, medical problems, and natural disasters could eat up your income. By having savings, you can avoid using predatory lenders. Here are some neat and practical ways to save money.
Start an Emergency Fund
One of the first steps you should take in saving money is to establish an emergency fund. You want to save at least six months’ worth of expenses so that should you lose your job or be out of work temporarily due to health problems, you’ll survive financially. Contribute to the fund every pay period, and use any surplus money towards it.
Meal Planning
Cut down on wasteful spending and food waste by planning meals in advance. If you work during the week, use the weekends as your time to meal plan. Instead of automatically going to the store and spending more money on groceries, create recipes with the staples you already have in your pantry. If you have a lot of ground turkey, create a week’s worth of meals around it. Some good dishes to make with ground turkey are meatballs, meatloaf, tacos, chili, and burgers.
Shop for the Kids’ Clothing at Thrift Stores
Kids outgrow their clothes quickly, so it doesn’t make sense to purchase expensive everyday clothes for them. Thrift stores often have name brand clothing at decent prices, so you can save money by doing this. Make sure you inspect the clothing items for quality before making a purchase. If you buy in bulk, you’ll have enough clothing for the next few months.
Walk or Use Public Transportation
If you don’t live too far from work or school, walk or use public transportation. When you drive your car daily, the gas costs add up. But walking and public transportation will save you plenty of money.
Determine Real Liabilities and Real Assets
According to the Rich Dad, Poor Dad Summary, many middle and working-class families acquire items that they believe are assets but in fact, are liabilities. Robert Kiyosaki, the author of the book, states that an asset is something that keeps money in your pocket while a liability is something that takes money away from you. A car is a liability because as soon as you buy it, it depreciates over the years. Other liabilities include high-priced furniture, big-ticket electronics, and smartphones. Real assets include stocks, rental properties, and bonds.
Compare Prices
When you shop, don’t just buy at the first store you see. Compare the prices at multiple stores to get the best deals possible. By doing this you’re not wasting money at stores that overcharge for the items you need.
These tips can assist you in saving money long-term. And as you have more money, you can use it to invest and build real assets that will keep your family financially stable for years to come.
