It’s never too late to examine the way money is spent and adjust to save more. There is no right or wrong way to approach savings and or how to get started. Many people think they have to do a huge intervention if they have been financially irresponsible or haven’t saved as much as they think they should. None of that is necessary. When people get serious about saving money, they are able to do it in many different ways.
As people think of saving money, they often approach it using well known methods. There are some that have a portion of their check automatically put into a savings account. There are others that will have their money deposited into a money market account and only withdraw what they need to pay their bills. The different ways that people have to save money is endless. The most important thing is that people save consistently and do it in a way that is comfortable for them.
Off the Beaten Track
With some things, an unconventional approach has to be used. There are some people that don’t save a lot of money using traditional methods. For those reasons, there have been several things suggested that everyone overlooks.
Downsize: Most people dream of living in a huge home with lots of room. What they don’t think of is the maintenance of those homes, the taxes and the living expenses. When those costs are factored in, many times, it’s too expensive for someone that needs to be on a budget or not making enough to live without debt. Rather than continue living in a huge home, downsize into a smaller home.
The Savings: When one downsizes, the financial relief is felt almost immediately. A smaller home should equal a smaller tax bill, living expenses and maintenance. Although it’s not the room that one initially wanted, the financial relief is worth giving up the additional space.
Save while Renting: Millions of people rent their homes. Those that are renting and want to purchase a home should start saving while they are still renting. When the decision is made to buy a home, people look for the best mortgage price and budget. Once a budget and price has been established for the house, it should be noted. Compare the amount that is paid for rent currently and the future mortgage payment. The difference between those figures should be put into a savings account.
The Savings: The amount that can be saved over the course of a year or several can be astronomical. It will groom anyone into paying a larger housing payment. The money that is saved can be used for many things, including the down payment for that new dream home. And if there is a change of plans about buying a home, the money is still there to use for other things or add to.
50/50 Investing: When people begin investing at a young age, traditional investment advice is to invest 80% in stocks and 20% in bonds. With the stock market being what it is, this isn’t the best advice to heed automatically. While there is always a chance to make a lot of money this way, it’s also a way to lose a great deal. There are a lot of people that have found investing 50% in stocks and 50% in bonds is a better strategy.
The Savings: While the savings may not be apparent for years to come, the savings will be obvious in the long term. By using a 50/50 strategy, the losses are actually softened and a steady growth is possible.
Use What’s Included: For those that frequently travel, using the things that are included in lodgings and packages will save a huge amount of money. There are some people that don’t eat the free breakfasts or lunches that’s included with their hotel stay. Instead they eat at restaurants for all 3 meals of the day and order room service or use the mini bar. Others don’t take advantage of the free pick up and drop off services with their vacation packages.
The Savings: By using what’s included over the course of a year, hundreds or thousands of dollars can be saved. It is easy to excuse paying a taxi $10 when traveling but for those that are traveling frequently and paying $10, twice a day, several times a month, it adds up. The same can be said for meals. Rather than ignore the things that are included, it’s best to use what is given freely.
Saving money isn’t the same for everyone. There are different approaches that can be used and different ways to save. The key to amassing a fortune is consistent saving and doing it in a way that is comfortable.