Page 219 - digitalliteracy

10.1 Getting Your Personal Finances in Order

Strategies for Success: Tips for Saving

By now you have a budget and some financial goals in mind. But where are you going to get
money to meet your financial goals? To save money, you either have to increase your income or
reduce your expenses. Although it is a simple formula, it can be difficult to put into practice
when you have to cut back on comforts and conveniences to achieve your goals.
Here are a few tips to help you build up your savings.

1. One key component of an effective savings
plan is to pay yourself first. Ask your
financial institution to automatically
reroute a portion of every paycheck to
your savings account. Learn from Elena
Maria’s mistakes. She used to save by
putting away whatever was left over at
the end of the month. The problem was
she rarely had anything left over. Rather
than simply assume she couldn’t save
and give up, Elena Maria decided to make
saving a priority and make it automatic.
She had a hard time at first, but she got
used to it. Now her savings has built up
over time. All it took for Elena Maria to
be successful was a new approach and a
positive attitude.
2. Pick up that loose pile of change from
your pants pocket or wallet and put it into
a piggy bank, because saving spare change
can add up over time.
3. Write yourself a check every week and
put it on the fridge. Deposit the money
into an account you have set up for your Fancy Collection/SuperStock
financial goals. There are several steps you can take to
4. Any windfall money should be saved create adequate savings for yourself.
immediately before you think of
20 different ways to spend it. If you get an unexpected tax return, reimbursement
check, or money from relatives for a birthday or holiday, stuff it into the financial goal
account. If you can’t bring yourself to do that, then compromise and put half of it into
the goal account and spend the rest.
5. Make coffee at home or at work. An extravagant coffee concoction every day can be
more costly than you think! Let’s say you spend $3.50 per day on an iced caramel
macchiato. That’s $17.50 per week and $915 per year (not including sales tax)! Treat
yourself to a special coffee drink every few weeks instead—you’ll savor it that much
more.
6. Pack a lunch. Eating out at work, whether at the sandwich shop across the street or
lunch out with the gang, costs between $7 and $12 per day (not including tax or tip).
Alternatively, you could pack your lunch for about $1.50 per day. This would save you
around $40 per week, or more than $2,000 per year! This doesn’t mean you can never
eat out with your colleagues or friends, but instead of every day, how about twice a
week? That would still save you more than $1,000 per year. Your friends may follow
your example once they see how much money you save.

(Continued)

203
© 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.

sol82612_10_m10_195-210.indd 203 6/29/16 5:20 PM