Smart Money Moves To Save You A Bundle In 2009
Eric Medde from bad credit loans lender loansbadcredit.org.uk offers a few tips on how to save money during 2009.
It’s no secret that for many Americans and UK citizens, 2008 has been a year of economic crisis and financial uncertainty. As real estate values continue to plummet, gas prices soar to outrageous new heights, causing many families to drastically cut back the family budget in favor of a more frugal lifestyle. With 2009 almost halfway over, things haven’t been much improving – and it doesn’t look like things are going to get any better anytime soon!
But saving money doesn’t necessarily mean giving up on a few fun luxuries. Here are a few smart money tips that’ll leave your budget and your wallet feeling a little less empty.
• Retirement Comes First. Think it’s a smart move to cut back on your contributions to your 401(k)? Think again. Contributing to your retirement savings should be your top priority now, as facing economic uncertainty is a lot easier to do with a healthy retirement portfolio. Put in enough to net your employer’s match, and move on to the next pressing need.
• Get Rid Of Debt. Got a balance on that credit card? Put it away! Financial experts agree that it’s extremely difficult to pay off a balance on your credit card if you keep purchasing unnecessary items with it. Be sure to pay more than your monthly minimum payment, and use all credit cards for emergencies only.
• Build Up An Emergency Fund. Accidents can – and will - happen at any time. Don’t let your family face financial ruin due to these unexpected costs. Try to put aside an emergency fund equal to your monthly salary in a designated bank account as a safety cushion.
• Think Ahead. Planning on having a baby? Is your child college-bound in a few years? Don’t let these events sneak up on you! Putting away an extra $100 or so a month will make a big difference between budget strain and financial comfort. For example, if you intend on having a baby in two years, you can save almost $2500; just think of all the diapers you can buy!
For many families, it takes a lot of work – and self-restraint – to stick to a budget. But the goal here is to think of the bigger picture. If you’re able to take care of your most pressing needs first, and manage to alleviate any bad debt problems, you’ll be in a better position to take that long-deserved vacation to Hawaii or buy those designer shoes. After all, with all the money you’ll save by following these tips, you’ll (finally) be able to afford it!
What many families don’t know about planning this type of budget is the financial behavior that it instills. Since a proper budget teaches you how to save money – and pay off those troublesome bills – many families soon become addicted to putting aside money. In the end, you’ll not only save a bundle now; you’ll be set up for financial success for the future!
