Penny Pinchers
Today's tip was written by Kelley C. Long, CPA/PFS and member of the National CPA Financial Literacy Commission.
My great-grandma always used to say a penny saved is a penny earned. And she was right! While I don't re-use plastic sandwich baggies like she did, I do practice a few money-saving habits that help me find an extra $50 or so each month to put away towards my financial goals. Here are five of my favorites.
• Save your change. When you're paying with cash, make it a habit to pocket the coins instead of paying with correct change. Once a month, take your change to the bank and deposit the contents in your savings account. You'll be surprised how much you can accrue.
• Round up. When recording expenses in your checkbook register, (You do keep one, right? If not, you should!) write the correct amount in the debit column, but when you carry it over to subtract from your balance, round it up to the next dollar. Watch your "change" add up!
• Match your spending. Most of us have something that we tend to overspend on – it might be a daily latte, new shoes or the latest music. Whatever it is, make a deal with yourself that for every dollar you spend on your indulgence, you'll match it with a deposit to your savings account. That way your hard-to-cut-out treats won't cut into your saving!
• Pocket your grocery savings. Most grocery stores list the amount you "saved" on sale items on the bottom of the receipt. Turn this into real savings by taking the dollar amount and putting it into your savings account. Even if it's only a couple dollars, do it, you'll be amazed how easy it is to give your savings a boost.
• Be deliberate with "found" money. Last month I changed my cell phone plan and reduced my bill by about $20 per month. Instead of just absorbing that money into my spending, I increased my monthly savings account transfer by $20. Do the same with any extra money you find, like raffle winnings, tax refunds, one percent salary increases, etc.
There are lots of little ways to increase the amount of money you save each month; the key is that instead of saying, "Oh, it's just a couple bucks, so it doesn't matter," remember that the little things add up!
This article courtesy of Feed the Pig. Copyright 2011 American Institute of Certified Public Accountants
Austin Bank has several savings accounts to help you meet your savings goals. Check out a list of options here, and contact your local office for more details on opening an account today.
