Saving Money 101

One of the hardest things to do each month is save money.  Groceries, kids, bills, rent, gas and entertainment are not cheap, and it has become quite difficult to save a substantial amount of money every year.  We gathered data from successful business professionals, bankers, financial advisors, single parents, large families and others to find the top 5 ways to save money each month.

5.) Prepare yourself to live off of 80% of your pay.  What does that mean?  If you make $1,000 a month, you should try and live off of $800.

4.) Create a budget.  This is not easy.  It takes time and thought.  Lay out your expenses for the month based on 80% of your take home pay;  Groceries, gas, rent/ mortgage payments, utilities, cell phone, etc.  Include in that budget some room for entertainment (movies, gadgets, name brand products, etc).

3.) STICK TO THE BUDGET.  We know, this is almost impossible as things come up.  Do everything you can to not exceed your monthly budget.  If that means not eating out for lunch, or saving instead of buying, then do all you can to live within your budget.

2.) Save 15-20% each month.  As state above, living off of 80% of your monthly income, means that 20% will be left over.  Place anywhere from 5-10% in a savings account and leave the other 10% in your checking or non-interest accounts.  Even if you are saving $100 a month, that is $100 you did not have at the beginning.  Trust us, it can add up!

1.) Avoid adding extra debt.  It is hard to put a “want” on the backburner, especially when you have a credit card handy, but that extra debt can become a burden down the road.  Try to save then buy, instead of buying right now.  For example, if there is a new TV for $500 dollars, but you only have $400 in your budget, wait until you accumulate an extra $100.  It is ok to use credit cards, that is what they are there for, but make sure you have the funds available to pay it off immediately.

Bonus Tip.) Don’t become so worried that you don’t enjoy life.  It is ok to spend money on yourself.  Enjoy each day and live with no regrets.

At Ryan, vehicles may be our profession, but people are our passion.