How To Save Money Fast
Putting aside money each month for an emergency is a smart thing to do, but sometimes something can come up last minute for which you need money right away. Or, you suddenly realize that a looming expense, such as college or a new car, is here, or arriving very soon. If you need to know how to save money fast, here are a few ideas to get that nest egg started or growing within thirty to sixty days.
Two Ways To Save
There are only two ways to save. Spend less than you bring in, and bring in more than you spend. Many people focus on the first more than the second, but if you can do both at the same time, you will make money fast as well as save money quickly.
Start With A Budget
Everyone loves to hate budgeting, but it’s truly the only way you can control what you’re spending. You need to allocate the money you have coming in, and see where you can cut. Don’t make it into a huge project, but take an hour or two on a weekend to make a list of everything you spend. Give it a category – shelter, clothing, food, fuel, utilities, insurance, medical expenses and miscellaneous are good broad categories. Then look to see where you are spending more than you need to, and cut there. Can you reduce your cable or phone plan? Can you turn down your thermostat to cut electricity? Can you take $100 off your food spending by cutting out fast food or junk food? Making meals at home, switching to one vegetarian meal per week can help cut your food bills.
Start Saving The Right Way
You need to open a savings account that you can’t easily withdraw money from. Stop in a local savings bank and open an account. You may be able to get a debit card that you can use only for deposits and not withdrawals – you don’t want to carry around plastic you can use to buy things with. Many banks still offer passbook or statement savings – you don’t have to get the debit card!
Each week when you come in under budget, put the extra into the savings account. Each time you skip an impulse purchase, add that amount to savings. If you don’t want to go there every day, keep a jar at home where you put the extra money, so you can see how much you’re saving. Or, you can open an online savings account with many banks, such as ING, and transfer the money you’re saving from your checking account. Some investment companies, like TD Ameritrade, also have money market accounts you can open for little or no fee per month, with no minimum balances. Look for their Suze Orman account which offers bonuses and promotions if you open with $100. This way you can also invest your money.
Earn More Than You Spend
By now, you should have at least an extra $25-50 per week you’ve been able to cut from your budget. If you’re really good at cutting, then you may be saving even more. But the way to boost your savings is to find more money to put into the account. How can you make fast cash to save more?
The easiest way is to sell some stuff you have around the house. Everyone has things they can get rid of in a yard sale or on eBay. Old furniture, CDs, computer parts, clothing in good condition, kid’s toys, electronics and appliances – the list is endless. You can make a few hundred dollars at a well-planned yard sale or garage sale. Smaller items that are easier to ship might get more if you sell at an online auction. be sure the cash you earn goes right into savings.
You can also get a part time job, or work online. While jobs are tight right now, part time minimum wage jobs are out there. All the money from such a job should again, go right into savings. If you want to work online, you can find online businesses who need writers or other freelance workers at sites like TextBroker, or Get-A-Freelancer or Rent-A-Coder. If you can write a letter to a friend, you can make extra cash writing for web site owners.
Put Away $500 This Month
If you’re really diligent, and willing to eat cheaply for a month, willing to forego the manicures and the car washes and the dinners at the fast food place, and if you hold a yard sale or garage sale and become a selling whirlwind on eBay, you can make $500 extra this month. Set that as your goal, and find a way to meet it. Open your new savings-only account, and get started. Once you have a nice chunk of money, find ways to keep saving (keep reading this blog!) and learn to invest your money – there are places to invest with just a little cash to start. Watch as the savings you have continues to safely grow at a good rate of return. Soon you’ll have that nest egg built up as well as your wealth-building mentality, to last for a long time.