Here, in Part 2, we give you five more ways to increase your savings.

In Part 1 , we promised still more ways to increase your savings. Do you remember how we described two people, one who found ways to increase savings and the other who didn't make the effort? There we pointed out how the person who steadily increased savings will probably be able to retire early while the person who failed to increased savings will probably have to work well into retirement.

Which road will you take?

What we’re really talking about here is better control of your future. If you haven’t read Part 1 , you might want to read it after you read Part 2. It really doesn’t matter in which order you read the articles. What matters is finding a simple way for you to increase your savings. Even better, find more than one way to increase your savings. The more ways you work it, the faster you will gain more control over your future.

Here are nine more ways to increase your savings.

  • Skip one big expenditure a year. You might be able to achieve some meaty savings merely by eliminating your winter holiday, trading in your high performance sports car for a more economical one. Instead of using an upscale fitness gym, check out local community clubs and churches which many have programs that are free.

  • Hold a garage sale to raise money. By getting rid of an a set of unused golf clubs, sports equipment, and old household goods, you could earn $200 or more in just a day or two.

  • Use your flexible spending account (FSA), if you have one. Don't pass up the chance to pay medical and dependent care expenses with pretax dollars through these accounts. A family of four is almost sure to pay out $1,000 a year on doctors, dentists, and prescription medicines. Your tax savings if you pay these bills from an FSA can be at least $280.

  • Always put as much money down as you can afford to. This will help you keep the loan balance as low as possible. For instance, when financing your next big purchase (a flat screen television or new boat, etc.) put as much money down on it as you can so the loan amount is as low as possible. By not financing $1,000 of the total at 12% over three years, you can keep $198 jingling in your pocket.

  • Use a home equity loan to pay off high rate debts. Change consumer debts at, say, 18% with a home equity loan at 12%, and you'll cut your interest costs by a third. In addition, the interest on a home equity loan can be completely deductible on your income tax return. Let's say you combine $10,000 in car payments and Visa/mastercard cash advances with a home equity loan. when you figure in the tax break, a taxpayer in the 28% bracket will save $936. (But you must be very careful here. Paying off this load comes first. You do not want to lose your house because you can’t pay the home equity loan.)

  • Pay in cash. This high discipline technique will show you a lot about the contrast between what you want and what you absolutely need. Additionally, by paying cash, you avoid paying finance charges. For example, trimming your credit card balances by $1,000 this year can save you almost $200 in interest if your card issuer charges 18.6% interest.

  • Don't pay for financial services you could get for free. Using only no fee checking accounts, no fee credit cards, and no load mutual funds can save you $100 a year or more. What do you pay annually for your banking account? Is it $100 or more a year? American express, Visa, Mastercard and Discover annual fee's usually range from $25 to $75. All this money you could be saving and earning interest.

  • Always buy term life insurance and invest the savings. Never buy whole life or universal life products as they are considerably higher in price per month.

  • Plan on saving your next raise. Ask any financial planner their number one rule is to pay yourself first. To increase savings, allocate your next salary increase as additional money toward an established goal. If you currently make $60,000, for example, a 5% increase will allow you $3,000 to set aside toward your children's education program.

Finally, we know some people will make the effort to find more ways to increase their savings. They will take action so they can gain better control of their future. At Everyday Wisdom, LLC, we urge you to be one of those people. Take the initiative. You can do it. Find more ways to increase your savings. Do it.

To read Part 1, click here.

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