The question some may have is how to save and build financial freedom. In today’s economy it is not so encouraging when it comes to saving. 66% of Americans would struggle to cover a $1000 expense. However; saving money allows you, to prepare for your retirement future and/or unexpected emergencies. It also forces us to spend wisely and be budget accountable. The problem is not that we have not thought about saving money, it is that many think that we do not make enough to do so. Know that even when it seems impossible you can do it! The road to financial freedom does not have to be hard. Start small and start today!
Five ways to to Save and Build Financial Freedom:
- Set Up a Savings Account
- Try the $1 or $5 Challenge
- Reduce monthly costs (such cell phone, credit cards, entertainment, etc)
- Avoid payday loans
- Take advantage of discounts and incentive programs
Setting up a Saving Account – The easiest and most effective way to save should be done automatically. Even if it is as little as $10 or $20 a month helps. Have your bank automatically transfer small amounts into your savings account. Also, save and put all your loose change in your account as well. For many people, that could add up to well over $100 a year. Don’t be embarrassed about the amount. Over time, you can increase the amount even more.
$1 / $5 Challenge – Get in the habit of using cash only. It gives you more accountability of your money and spending. So the challenge…whenever you you break a larger bill and there is a $1 or $5 in the returned change then you save it. Put it in a five gallon water bottle…penny bank…envelope, just store it away and continue to add to it (then add to your savings account).
Reduce monthly costs – Cell phone cost have dramatically increased. Understand your monthly fees, new phone costs, insurance replacement, and termination charges. Make your monthly credit card payments on time. Especially to avoid late fees. Shop around for auto and homeowners’ insurance. Before renewing your existing policies each year, check out the rates of competing companies. Give up premium cable channels or better yet, cable all together. It’s a lot cheaper to rent one film a week than watch movies on premium cable channels.
Avoid payday loans – Payday loans typically charge interest rates between 200 – 500 percent. You can save a lot money off these high-cost debts by not even getting them.
Take advantage of discounts and incentive programs – if your employer offer discounted rates for computers, fitness center memberships, or movie tickets take advantage. If they offer 401K, definitely utilize that too. Look for sales on clothes and shoes at discount outlets. Last, some businesses offer frequent shopper discounts or point based rewards to loyal buyers these offers can help you save money.
Applying these efforts do not need to be extremely big, but you do need to start somewhere. Start saving and build financial freedom for yourself.