STAY OUT OF DEBT WITH THESE USEFUL MONEY SAVING TIPS

In these hard times it is more important than ever to stay out of debt and to set aside money for a rainy day. Here are five tips for getting organized and starting to save:




Allocate Your Savings as a Payroll Deduction



Decide on an amount to be taken from your payroll check and deposited directly into a savings account. This way it will be in the account before you get hold of your salary. However, do not draw out this money every time you say you need it or the whole purpose will be defeated.



It helps if you can select a firm percentage of your income, say 20% of your monthly net income or 75% of your monthly disposable income, to deposit. It will not take long to have a nice little nest egg built up.



If You Have Taken Out a Loan - Pay it Back Immediately



If for some reason you need a loan for some emergency, it is important that you pay the loan back as soon as you can. This way you will avoid having to pay high amounts of interest on your loan.



Reap the Rewards of Budgeting and Saving



Put each buck you manage to save by using common sense ways to reduce your spending into a savings account. Keep an eye on the amount you are putting into the account and make sure it is in an account where your money is accruing interest.



As a reward, withdraw the amount of interest earned each month and buy yourself something nice. This will be an incentive to put more money away every pay day. The more saved, the better the reward.



Financial Planners - Are They What They Seem



Remember, they are in the business of making money and may be selling you products which will make money for them at your expense. There is plenty of free or low cost information available to help you if you are serious about bettering your finances, so you do not need to incur further debt by paying out fees for help.



Create Your Own Way of Saving



This post has provided you with a few ways to save but there are many more available to you. You can either use techniques which have worked well for others or try out your own ways of saving money. As long as you develop your plan, stick to it and the end result is that you save money and become debt free. It does not really matter which method you choose.



Whether you decide to implement some of the above ideas or use your own means you need to get organized. You will make things much easier for yourself by being methodical and once you have become organized you will realize just how much time and money you can save.