Saving money always sounds like a good idea, but far too often we end up spending what we intend to put away. There's always something that needs to be paid now, or something that needs to be purchased. Sure, you plan to save for a rainy day next week. But what if the rain starts falling over the weekend?
Here are some tried-and-true painless tips for fluffing up your financial cushion. With these small tricks, you'll be amazed at how quickly cents turn into dollars and dollars turn into signficant savings.
1. Save before you see the money.
Make arrangements with your employer to have a percentage of each paycheck automatically deposited into a high-yield savings account, like the HSBC Direct Online Savings Account, which earns you a 1.45% APY. Another option is to set up an automatic transfer through your bank that coincides with payday.
2. Round up your expenditures, round down your income.
This simple concept will pad your bank account quicker than you can imagine. Each time you enter an expense into your budget, round up to the nearest dollar. If your electric bill is $67.78, enter it as $68. Likewise, round down your income. A paycheck of $802.47 would be entered as $802.
The tricky part is balancing your checkbook. You will no longer be comparing your bottom line to the bank's bottom line in order to confirm that all deposits and expenditures are accounted for. Your personal balance will remain in range, while the total in your bank account is actually growing, cent by cent. Every 3 to 6 months, take the difference between your bottom dollar and the total your bank shows and transfer it into a high-interest savings account.
3. Save for and between miscellaneous purchases.
If you really want that $120 mp3 player, don't let yourself buy it until you can pay in cash. Build a category into your budget specifically for such short-term savings. Then make it standard procedure to put a designated amount of money into a mid-to-long-term savings account before you start saving for your next miscellaneous purchase.
For instance, you would save $120 to purchase the mp3 player, then put $200 in a high-interest savings account. Save $60 for the next computer game you're longing for, then add another $200 to the high-interest savings account. This helps you avoid feeling deprived by giving yourself "treats" on a regular basis. It also encourages you to stick to the overall budget so that you can save faster and buy yourself toys more frequently.
4. Take advantage of compound interest External Link.
Even the minimal interest that can be earned on a checking account at some banks and most credit unions is preferable to no interest at all. It's free money! Take advantage of online savings accounts for the higher interest rates they offer. Pay your bills on time and keep your credit record clean so you can qualify for fee-free banking. Shop around for a bank and demand an account that doesn't charge you to use your own money and allows you to earn interest.
5. Recycle for dollars when possible.
There is absolutely no excuse for throwing anything recyclable in a landfill. Forget the environment; what many people don't realize is that a lot of reusable materials have a market value External Link. Most towns have at least one business that will pay for various metals, old cell phones, obsolete computers, computer parts and car batteries, among other things. Clothing that is in good shape can be sold at resale shops. Many objects found around your home might make good sales on eBay. Money gained through recycling can be an excellent source of "play" for the budget-conscious, or a good addition to a rainy day account.
6. Always check online before buying.
Do your research when you're preparing to make a purchase by checking prices and deals online. You'll be surprised how often you can find a better price or deal at a site like Offers.com External Link, and you'll save the legwork of shopping around in physical stores. If you do make your purchase online, always find and use a coupon code External Link. Many stores also have printable coupons which are available online. There are certain items -- like clothing, computers, electronics and software -- you should only buy with a coupon. You'll notice that products like these almost always have promotions and coupons available if you take the time to look, so there's no good reason to buy them without that savings.
Taken From (http://www.moneysavingguide.com/saving-tricks/)
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