Best Way to Save Money

Written by on January 31, 2012 in Money - No comments | Print this page

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In this economy everybody wants to know the best way to save money.  There are numerous ways to cut back on your spending and reduce your living expenses but really and truly what is the best way to save money?

You stash that cash.  I recently had a conversation with one of my girlfriends about saving money.  We were in agreement with one major way to see your money grow.  Keep money in a separate account from your primary account.  For those who will spend if you have cash make that deposit or use a shoe box. It sounds old fashion but you would be surprised at how many people do this.

That separate account I mentioned above is more commonly known as a savings account.  It may seem so hard to save money, to put money in that account or even harder to keep money in that account.  Here’s a simple trick to leaving the money in there: don’t have a bank card associated with the account.  Having ATM or check card connected to your savings account will make it easy to spend your heart out.

If you have it in you, pretend as if the account doesn’t exist or if you it’s not yours.  You’ll never believe this but a good friend of mine saved $25,000 by pretending he didn’t have the money and not making it readily available.  He had most of it tied up in mutual funds and the rest in a savings account in a bank other than his primary bank.  It’s not so easy to spend money you can’t access.  In order for him to withdraw any of that money he had to drive a good distance.

Can you do this?  Will it help you save money?  Don’t think you have enough extra cash to save anything?  Guess what? Even on a part time income, you can save money.  You just have to adjust the amount you save each week, every two weeks or every month.  Even $50 every two weeks gives you $1300 in a year.  Another bonus to opening a savings account is that your money will accrue interest.

Of course the more you save the more interest you yield.

 

Here are top ways to save more money that you can put in the bank:

1. Make a budget and stick to it.  What good is a budget if you haven’t committed to it?

2. Schedule separate automatic deposits into your checking and your savings accounts.

3. Regulate how much you spend on utilities, food (eat out less), non necessity purchases.

 

Do you think any of this information will help you?  What are your biggest challenges in saving money?  What works for you that may work for others?  Or, what’s keeping you from saving a few bucks?

Let us know in the comment box below.

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About the Author

Matt Brand

Matt Brand is QLR's money saving expert. His experience with credit cards and student loans have made him take a strong interest in personal finance, saving money and sharing his knowledge. He is passionate about teaching others how to avoid the trap and make smart financial decisions. View all posts by Matt Brand.