Skyline 101: Saving money
With inflation and expenses up more than 6% compared to last year, it's hard to save money and plan for the future. Let's discuss ways to quickly save money over time and hopefully you'll have some great habits by the end of this read.
When it comes to spending money, are you spending wisely? Does the thrill of getting an item on sale make you feel that you've saved money? For example, have you ever uttered the words, "Well, it was 50% off, so I saved $25.00!" Did you save $25, or did you just end up spending $25 on something you didn't actually need?
I know, it is tough when it's in the moment, but micro purchases are only contributing to less funds in your account with each and every swipe of the debit card or credit card. I would suggest trying to do the following before making the purchase by asking yourself:
- Do I need this?
- If yes- proceed to buy.
- If no - see next question.
- Do I want this and did I already treat myself this month?
- If yes, then put it back!
- If no, make the purchase, but refrain from others.
Do you have a nest egg for emergency situations? If not, let's make a plan together!
- Saving $25 per week amounts $1300 per year.
- Saving $50 per week amounts to $2600 per year.
Can going on your daily Dunkin or Starbucks run actually cost you your retirement?
Well, let's be honest, does that one coffee give you pickmeup you need first thing? The reality of saving money comes from creating a plan. Just like you commit to your daily coffee, it's important to commit to your savings plan. I don't think anyone can't retire because they bought a coffee every day; however, it's imperative that an individual saves in the same habit as the morning coffee run.
Ways to cut down on monthly expenses include:
- Cancel that subscription service you aren't using.
- Plan out your commute or driving to utilize less gas.
- See what you are spending on clothing and what you actually need to get versus what you want to get.
I hope this helps you create the nest egg for the unexpected expensed or an emergency fund as needed. If you'd ever want to create a budget plan, please reach out to anyone on the Skyline Financial Federal Credit Union team as we're more than happy to make an appointment and talk it over with you one on one!
James A. Higgins, MBA, CUDE
President and CEO