If saving money were half as easy as spending it everyone would be a millionaire. Fortunately, there are some things you can do to step up the amount that you are regularly able to save.
Following are a few things you can do to help increase the amount you are able to save for the future without going to crazy extremes to make that happen.
- Keep track of all of your expenses. As ridiculous as this may sound, until you record all of the expenses you have and the places you spend your money each month the chances are that you aren’t actually aware of exactly how much you are spending on different categories in your life, such as entertainment, eating out, etc. Putting it in black and white can make it easier to determine areas where you can most easily cut back in order to boost your long-term savings.
- Pay off credit cards in full each month. While this is often easier said than done, it would be almost impossible to over-emphasize the importance of eliminating any debt you carry on credit cards. Given the high interest rates of most cards, paying the minimum amount due each month can not only mean that it could take literally years to pay off any kind of real debt, but that you will ultimately be paying far more than the value of what you purchased to begin with.
- Consolidate debt. If you are carrying balances on multiple credit cards, if you can’t afford to pay them off, the best thing you can do is to transfer the balances of all of your cards to the one with the lowest interest rate.
- Automate your savings by setting it up so that a certain amount of money is automatically transferred to your savings account on the days that you are paid each month. Despite the best of intentions, saving money is a lot easier when you never actually have that money available to spend to begin with.
The above are just a few steps you can take each month in order to boost the amount you can routinely save and the saving you have available to invest for retirement.
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