Three Tips to Keep Extra Money in Your Pocket

Make Yourself Number One

Every month as part of your monthly expenses, remember the first check should be written to yourself and headed directly for your savings account. This can often be difficult especially when you see the numerous bills awaiting you, but there are ways to lessen this pain. Set-up direct deposit, and assign an amount to go to your savings, money market account, investments…do this today so that you no longer have to worry about making the contribution or find yourself wondering where the money went. You will know that your money is being placed where it belongs and is starting to work for you.

 

Save for the Rainy Day

We hear this one too often, and we often take a chance that this day will be down the road. But, what seems to happen is it attacks us when we least expect it. We are then stuck shuffling things around to try to pay the bills, or have to place a charge on a high interest credit card because we didn’t have a backup plan. Make a cash reserve or emergency fund available. Many credit unions are offering Christmas funds, vacation funds etc. to help consumers. Some take as little as $5 to get things started. For years Financial Advisors have stressed setting aside a 6 month reserve, but with the volatile state of the economy it is wise to accrue 8 months of savings because of the length of time it is taking to obtain a new job. Set goals, and look at  what is short range vs. long term. Plan accordingly and make it fun. Check out Suze Orman’s Expense Tracker for assistance.

 

Live Within Your Means

In 2010 make your primary goal- reaching a cash based way of living. Of course there are times you may need to use a credit card for expenses that run higher, but eliminate the day to day living on a credit card for survival. Too often we spend more than what is coming in without realizing it because the process becomes familiar and we get comfortable with our actions. Making more money will not make a difference if you are not taking the proper steps, and doing something positive with it. Make your goal getting in the black and building the wealth today that will provide you with a relaxing future tomorrow.