The Penny Wiser | Urban Consumerism

Cash Poor Saving

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SAVE! The idea of saving can seem like the impossible dream when you are living paycheck to paycheck like so many are, but there are ways to save without devastating your monthly budget.


		One of the first things you have to do to save effectively is to prepare your mind for saving. Those who live paycheck to paycheck are great at two things: avoiding stress and dealing with creditors. Ironically, these two traits come in handy when trying to save on a tight budget. First, fully embrace the concept of Paying Yourself First. This sounds ridiculous to those who may be struggling to keep a roof over their head, buy food, or keep the power on but this concept is vital to your success as a saver. A regular savings program no matter the amount is one of the most important ways to ensure financial stability in event of an emergency or other important expense.

No matter how dire your situation right now, take an hour to look at your current finances and see exactly where your money is being spent. Then, take a look at your income. You should be savings at least 10% of all income that comes into the household. This is 10% off the top, not 10% of what’s left after you’ve paid or tried to pay everyone else. This can be done in a variety of ways.

An easy stress-free way to save is if your employer offers a saving program. You need to be paying into it but do not save any more than what they’ll match. The great thing about saving this way is it taken out of your paycheck before taxes and other deductions and you never see the money in the first place, which means you aren’t tempted to spend it.   If you’re living on a fixed income or receiving unemployment benefits, still strive to save 10%. Slow and steady is the rule here. Your savings will grow with time.

If you’re always short on money, you’ve no doubt become very adept at talking with harassing collection agency reps about why a payment is late or absent altogether. Don’t wait for a collection agency call before you take action. You know better than anyone that Peter will be robbed to pay Paul this month so call Peter and alert them to your situation. Negotiate directly with the company for more time or a lower payment not with the collection agency folks.

You’d be surprised how receptive your creditors can be when you demonstrate a willingness to remain in good standing with them. A simple call is all it takes.    Some even have assistance programs that offer customers who ask for them lower interest rates or flexible payment terms.

The Joy of Saving
Learn to experience the genuine pride that comes from a feeding your piggy bank rather ponying up your credit card to satisfy your inner clothes-horse, or purchasing yet another whatnot to collect dust.   Delay the impulse to buy anything by at least a day. Mull it over. Is it a need or a want? Would your world end if you didn’t have it? Most impulse purchases are wants. Frivolous spending adds up and robs you of the true joy of creating personal wealth.

Put loose change into a jar every night and every week or so, throw a dollar bill or two in there to boot. You’ll be surprised that over the course of a year, you can amass $500 to $1,000 in saved coins and small bills - great for Christmas gift money.

Saving is a Family Affair
Talk about saving money for the future often and teach your kids to save by example by letting them see you happily depositing money into the “family” bank account. Make them put 10% of their allowance or paper route money into a piggy bank too even if it’s just 10-cents. Teach them to SAVE!

KWIK TIP:
Check out online savings accounts that offer much higher interest rates on savings accounts and eliminate impulse account dipping.

With a little resolve and a belief that you deserve to be paid first, you can find yourself on the road to saving the money you’ll need to be financially secure during tough economic times or truly be on easy street when the livin’ is easy.

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