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Article Title: 5 Simple Ways to Save Even in Tough Times
Author: Jay Peroni
Category: Financial Planning, Personal Finance, Wealth Building
Word Count: 1028
Keywords: financial planning, certified financial planner, wealth creation,
investments, savings
Author's Email Address: [email protected]
Article Source: http://www.articlemarketer.com
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"A prudent person foresees danger and takes precautions. The simpleton goes
blindly on and suffers the consequences." Proverbs 27:12 (NLT)
Christians are not exempt from trials and struggles in life and should be
prepared in advance for both feasts and famines - the good and bad times. As
wise stewards entrusted with all that God provides, we should seek to plan
ahead but not plan so much as to insulate ourselves from Him. There is a fine
balance between saving for emergencies and saving to shelter ourselves from
every possible emergency. Even in tough economic times, savings should be a
part of nearly every budget.
The purpose an emergency fund is to have resources available in the event of
unforeseen circumstances (car troubles, prolonged injury or sickness, roof
leaking, furnace troubles, etc.). An emergency fund shows preparation and
planning for when the inevitable "trials of life" come your way. Having an
emergency fund shows proper planning and a wise use of the resources God has
provided.
Do you have an income or outgo problem?
In general, when it comes to a lack of savings, it is often not a question of
low income, but a matter of high spending. While it's very true that often
we're put into situations where we must spend money (due to loss of employment,
health care bills, home repairs, etc.), for many of us our excessive spending
is merely a habit we must learn to break or at least control.
But where do we begin?
Many people would like to reduce their spending and increase their savings, but
it seems like such a monumental task that they simply don't take any steps in
the right direction. Sound familiar? Saving money can begin right now, and you
can start in small ways. Here are several easy ways to increase your savings:
Secret #1: "Pray on it"
When making a major decision, generally related to a purchase, what if we took
more time to pray about it? Is it really a need or just a want? Is there a
cheaper way to obtain it? (used, cheaper version, another place to buy it?)
When you're considering a large purchase (like a car) or even small (like a
pair of shoes), try putting it aside, even for just a week or two. Allow
yourself time to think and pray it through.
If, after that time, it's still a good idea, proceed knowing it's not just an
impulse buy. If it's not a good idea after that time, don't buy it. Most of us
have made at least one (and probably more) purchases of this nature that we
have later regretted. What if you had the money back for every such purchase?
What if that money was collecting interest in your savings account? It could
really add up.
Secret #2: Pay yourself first
Of course, I'm talking after your tithe and offerings, but when you get a
paycheck, you likely pay your rent/mortgage first, your car payment second,
your insurance third, and so on. Somewhere at the VERY BOTTOM of your list is
YOU. Why are you at the bottom? Probably because you know YOU won't penalize
YOU if YOU don't make a payment to YOU. My point is this: hold yourself
accountable. Start by putting money into your savings account FIRST. Take care
of YOU before anyone else, so there are no excuses at the end of the month.
Unless your monthly bills are higher than your monthly income, you should be
able to determine a set, comfortable amount that goes into savings every month
- no ifs, ands, or buts. Stick to it!
Secret #3: Shop smarter
We're all in a hurry, so it's easy to grab items like snacks or coffee when
convenient. But think about it: if you stop at a convenience store for a 12 oz.
coffee every morning, that's probably about $1.75 you're spending every day and
that adds up to over $600 every year! If it's Starbucks you could probably
double that figure. You get my point! What if, instead, you bought a coffee
maker for your office and bought your coffee grounds in bulk? How much money
could you save? And how could interest affect what you're saving? If you saved
just $600 per year in a basic savings account with a 5% average rate of return,
after 30 years you could potentially have more than $30,000 and that's after
taxes! Start paying more attention to those "little" expenditures. They can
really add up!
Secret #4: See your destination
They say that hindsight is twenty-twenty. Think about this: if 10 years ago you
began saving just $200 per month in a shoe box under your bed, then today that
shoe box would have $24,000 in it! Unfortunately, you can't go back in time.
But you CAN look ahead. Use a financial calculator (there are free calculators
available online) and start plugging in numbers and calculate where you could
be in 20-30 years depending on how much you're willing to save today.
Secret #5: Ditch the shoebox
Speaking of that hypothetical shoebox under your bed, the money in that box
might collect dust, but it won't collect interest. And while I seriously doubt
that you keep money in a shoebox, take a moment to consider WHERE and HOW you
save your money. While a traditional savings account can earn you interest,
there are other options available to you that could potentially earn you more.
Perhaps you've heard people speak about money market accounts or CDs, but
you're not sure what they are or if they're right for you. It's a good idea to
learn all you can and make informed decisions about your money.
The best advice I can give you is this - speak with a financial professional.
While saving money is important, where and how you choose retain and grow that
money can have a significant impact on your net worth in the years to come.
Will you choose to be dependent on others (government, employer, nursing home)
or will you choose to become financially free? What you do today will impact
the choices you have in the future.
Jay Peroni, CFP, and author of The Faith-Based Millionaire and The Faith-Based
Investor. Jay is also the founder of http://www.FaithBasedInvestor.com, a
faith-based investing newsletter and the founder of
http://www.ValuesFirstAdvisors.com a firm dedicated to faith-based financial
planning.
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