Ways to Save and what Habits to Avoid

By Max Webber
In October 27, 2010

Escaping the hold and weight debt puts on a person is a relief, but once your debts and bills are paid off then what? With no overdue payments, or backed-up bills to worry about you will be able to do something that may now seem strange to you, Save! Avoid slipping back into your old debt gathering ways and start saving your money.

The first step in saving money is setting up a savings account if you do not already have one. The account you choose to open should be free of any investment risk and must be a liquid account that you will always have access to.
If you are someone who puts off going to the bank, most likely you end up spending that money you set aside to deposit rather than immediately adding the amount to your bank account. If this is sounds familiar, it would be a good idea to set up a direct deposit through your workplace. When you set up a direct deposit you can choose to have the entire amount of your paycheck or specify the amount you would like deposited into your chosen account.

While setting up your direct deposit account, create a budget if you do not have one already. By keeping track of your monthly spending, you’ll be able to better assess where your money is going, where you can cut back, and where you can improve. This will also help you determine how much per week you will be able to have automatically taken from your check and deposited into your savings. You do not want to choose to have more deposited than you can afford, because you do not want to get in the habit of taking money out of your savings account.

Other small but useful ways to save is by utilizing your resources. Most areas have these buildings that store valuable information and technology available to the public free of charge! This place is called a library. Library visits are on the decline with internet usage on the rise however libraries are great resources to find books, magazines, and even rent your favorite movies. By taking the time to visit your local library, you can be saving all the money you would typically spend on those resources.

Another great way to save is to practice the art of bargain shopping. Don’t make fun of clipping coupons, because saving a little here and there can save you a lot in the long run. Most stores also offer price cards that offer special deals and exclusive offers, some that are specifically available online. These cards are free and although may be a pain to fill out, it only takes a few seconds and the more saving opportunities you take advantage of the more money is kept in your pocket. Don’t be afraid to ask retail stores about price matching. Utilizing a stores competitive store pricing policies is a great way to get the product you want for the price you want. Most retail chains will also honor their own online prices which tend to be cheaper!

Habits to Avoid:
• Do not keep a list of items you want to purchase in the future when you have “extra money”. By keeping a tempting list like this the minute you get any extra cash its already spent.
• You may have learned this while you were digging you way out of debt, never just make the minimum payment to your credit cards, and always know your interest rates.
• You should always know the amount in your bank account(s) and know how much you can spend. Never spend more than you have, because that’s how you get back into debts ugly grasp!