Monday, December 07, 2015

By Barbara Pronin Saving money is tough when you find yourself living paycheck to paycheck, focused on paying the bills. But financial planners say there are at least five ways to get savings underway with small, but concrete daily strategies:

• Start a budget based on fact, not fantasy – The first step toward a workable budget is knowing where your money goes. For 30 days, track every single daily expense, from paying the gas bill to picking up the dry cleaning to the ice cream cones you bought for the kids. Once you’ve added it all up, compare the total to your total income. Now you know the gap if there is one, and you are ready to close it and start saving.
• Find and trim the fat – What can you live without? Cull any services you really don’t need – the all-inclusive cable plan, a rarely used gym membership, a morning latte every day on the way to work – and trim the weekly grocery bill by cutting out some (fattening) treats and clipping and using coupons.
• Save your change – Get into the habit of emptying your pocket or change purse each night and dumping the coins into a piggy bank. You’ll never miss it, and you may be amazed at how quickly the change adds up to enough to start a savings account.
• Boost your income – There are many ways to make extra pocket money these days, from getting a part-time job to selling unwanted items on eBay or Craigslist to participating in paid online survey. You may even be able to channel your talents – photography? Ad writing? Pie-baking? Babysitting? – into a lucrative sideline.
• Start with an emergency fund – The problem with living paycheck to paycheck is there’s never any money if a tire blows or the fridge goes on the fritz. Determine a safe emergency fund balance and put your savings toward it. When the balance exceeds that, move some funds into the savings account you’ve always hoped to build.

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