How Do You Save Money

How do you save money?

If you resolved to get fis­cally fit in 2013 we have some great tips to help you get your finances in order, save money for the future and have more money in your bank account today.

1. Make a Three-Year Plan
“Think three years out: Where do you want to be finan­cially? It might be to pay off stu­dent loans, or credit card debt, or buy an apart­ment. Fig­ure out how much you will need to achieve it, and then com­pute how much you will need to save each year, month, and week.”

2. Get Orga­nized
“Run your finances like you run you social life! Set up cal­en­dar alerts for your bills. Make a sep­a­rate email address for your bills so they never get lost in the shuf­fle. Plan for the year ahead-I do my taxes every Jan­u­ary and buy all of my hol­i­day gifts in September.”

3. Fol­low the 50/20/30 Rule
“Allo­cate 50 per­cent of your salary to essentials-rent, gro­ceries, trans­porta­tion to and from work, and util­i­ties. Put 20 per­cent to your future-401k, retire­ment, and free­dom fund. 30 per­cent goes to what­ever the hell you want! Chanel pumps?”

4. Build Your Free­dom Fund
“Set aside at least six months of life expenses so if you lost your job tomor­row, you’d be able to stay afloat. It’s a free­dom fund because it also allows you to walk out of a job you hate or have the free­dom to leave a relationship.”

5. Pri­or­i­tize
“Think about the most valu­able places to put your dol­lars. For exam­ple, if your credit card debt costs you 17 per­cent inter­est and your sav­ings account only earns you one per­cent inter­est, pay off the debt before you focus on saving.”

6. Pro­tect Your­self
“The number-one case of bank­ruptcy is being improp­erly insured. Make sure you have ade­quate renters insur­ance, dis­abil­ity insur­ance, and car insur­ance. Peo­ple can be so thought­ful about sav­ing a few dol­lars on things like gro­ceries, but they might have blind spots to the tune of thou­sands of dol­lars.“
7. Assign Short-Term Dead­lines
“Start out with sim­ple goals and timeta­bles. For exam­ple, try to save $1,000. Or say, ‘This month, I’m get­ting life insurance.’”

8. Go Social
“Tell people-whether it’s your best friend or your boyfriend or your mom-about your goals. It’s social rein­force­ment and will help you stick to it.”

9. Find a Money Doc­tor
Approach­ing your finances-especially debt-can feel par­a­lyz­ing. The best thing you can do is reach out for pro­fes­sional help-an unbi­ased expert who’s not try­ing to sell you any­thing can help you make a plan. You can call Learn­Vest for a free finan­cial checkup this hol­i­day season!




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