Most people think that when you are working towards settling or clearing your debts, then all your money should be directed towards that and none towards savings. That is not true. In fact, it may land you in the same trouble you are currently in.
Since childhood, we were all taught to save something for a rainy day. It wasnt for nothing. While credit cards and loans became increasingly accessible and seemed to make savings unnecessary, time has proven that nothing can compare to saving up money.
Sure, you may not be saving towards buying a house or a car anymore, but what about the kids college fees, or that emergency fund that will help you keep your credit card debt at bay? Saving can very well be the buffer that keeps you from complete financial ruin.
Take it slow
Now, Im not asking you to save half your income. It would be too much! And I understand that you are already cash-strapped as it is. So here are some simple steps you can follow to save as much as you can:
1. Automate it
You know how you can have your bill payments deducted directly from your paycheck? That way, you dont get to see all the money then watch it all go away. In the same way, you can have part of your paycheck going directly to a savings account so that you dont see it. You can place a standing order with your bank so that what you have left in your checking account is the net balance after savings.
2. Keep the change
When you are broke, you can go digging through your purse, wallet and even your couch to find that fifty cents that you need to add up to buy something. Instead of doing that, get a jar to put in all that lose change. You will be surprised at just how much you have saved in the course of one year.
3. No need for cable
I see you looking at me like Im crazy but there are plenty of more affordable options and you will save so much money if you cut the cable. Do not renew your subscription and see the difference it will make for your money and your entertainment options.
4. Make your own lunch
It costs half as much to make your own lunch as it does to buy lunch at work. It only takes a few minutes and it is actually healthier for you (so weve saved some potential medical expenses there!). Place the other half of your lunch money in the emergency fund and watch it grow.
5. Smart grocery shopping
There are plenty of clever ways that you can reduce on the grocery expenses. First, print out coupons before you go shopping to make the most of those discounts. Next, by the non-perishable foods during sales and make sure to really stock up. They should carry you through two months leaving only regular shopping for perishables.
Saving is just one way to get out of debt. To learn more about debt relief click on the link below.