How to Save Up Money
It wasn’t that long ago that I wrote an article called financial success. In fact I am about to tell you the biggest achievement yet in our lives as parents other than having three kids is…… we have been able to save up enough money to have all of their prepaid college funds paid off prior to them entering Kindergarten. You read right we just wrote a check a couple of weeks ago for $38,000+ for the last child’s college fund. I am pretty sure he can’t even use the words college fund in a sentence yet he has 4 years of higher education paid for. The reason is simple. We know how to save up money.
How to Save Up Money
- Have a goal
- Have a plan
- This is our 52 week savings plan to get you started print it out
- Determine what type of spender you are and study what you can cut from your spending
- Get out of Debt
- Use Frugal Ways to Save Money: Tips for Getting Out of Debts
- Pay off your credit cards. I pay mine every Wednesday so I do not have a balance. If you owe money pay off as much as you can.
- Do not buy anything unless you can afford it at that moment. That means do not buy things that you will pay off when you get that check. If it is $20 and you do not have $20 in your account than you can’t have it.
- Either only carry cash or do not carry cash. I do not carry more than $20 because I use my credit card to keep track of my spending. It is easier for me to see my expenses.
Pay yourself first
That means take the highest amount your employer matches and save that. That also means take 20% or more of your income and have it deposited into an account. This account is not to be used unless there is an emergency. Define what an emergency is. The newest Kate Spade purse is not an emergency. You needing medical care is one.
Stop spending money
Find things to do that do not cost money
Learn to cook at home instead of going out
Keep a record of expenses and income
Figure out places to make cuts
follow your plan
Figure out rewards that do not cost money like 30 minutes of reading time or a nice walk
Be responsible and learn to say “no” to yourself
How do you save up Money?