The purpose of Money Talk is to improve readers' financial capability with research-based personal finance information.
Thursday, February 28, 2019
Six More Successful Ways to Save Money
Last week’s post described six ways to save money: pay yourself
first, collect coins, complete a savings challenge, continue to pay a loan or
bill, break costly habits, and bank a windfall. Below are six more successful
saving strategies to “find” money to save to reach your financial goals:
Save- Decide that, for a month or two, you’ll buy only absolute
necessities and save any money that remains after paying bills. At the end of
the crash savings time period, treat yourself and buy the item(s) that you were
saving for. Then resume your “normal” spending habits or set a new crash
a “Club” Savings Plan- Start a structured savings plan to
save money over the course of a year for holiday or vacation expenses. Some
banks and many credit unions still offer them. Unlike the “coupon books” of
years ago, weekly savings deposits are often transferred electronically from a
checking or savings account.
Your “Extra” Paychecks- Mark all your paydays for 2019
on a calendar. If you are paid bi-weekly, in two months of the year, you will
receive three paychecks. If you are paid weekly, there will be four months with
five paychecks. Anticipate these months in advance and plan to save part of the
Excess Expense Reimbursement Money- Review your
employer’s reimbursement policy. If you get a fixed sum for business travel
expenses, instead of having to collect receipts, and spend less than the per
diem amount, save the difference. Ditto for mileage reimbursement for using a
personal car for business.
Interest and Dividends Automatically-Arrange to
have dividends and capital gains on mutual funds reinvested to purchase
additional shares rather than receiving a check for a small amount and spending
it. This is a painless way to increase personal savings and, over the long
term, the results can be spectacular.
in a Tax-Deferred Retirement Plan- Reduce your
salary via payroll deduction to save for retirement and aim to take maximum
advantage of employer matching. Money contributed to a 401(k), 403(b), or
similar retirement savings plan and earnings on these funds grow tax-deferred
until withdrawn in later life.