Friday, January 7, 2005
More Bang for Your Buck: Saving
After the holidays, most of us are a little low on the cash flow. So in tonight's More Bang For Your Buck here are seven ways to save for 2005.
WSVN-- Out with old - in with the new. This New Year, some people will try to lose a few extra pounds.
Others will try to stop smoking. But if you're goal is to save, 2005 can be very profitable.
Ruth Hasse Cooper of Merrill Lynch:"Anybody can save money.
Ruth: "And it doesn't usually involve the kind of scarifies people are afraid of."
Financial advisor Ruth Haase Cooper of Merrill Lynch says there are seven ways to save starting off with creating a budget.
Ruth:"It's important to check everything you spend money on. See where the money is going."
To help you keep track, the website right-on-the-money-dot-org offers a free budget program. Just enter how much you're spending and the program will show you where to cut costs.
Ruth: "There are a number of savings that can be made."
Trick number 6 is limit dining out to once a week. Try to bring lunch to work and eat dinner at home.
And if you're worried about staying motivated, number 5 is set a savings goal.
Ruth: "Its important to set goals. If you know how much its going to cost, lets say an item thats going to cost 1 thousand dollars. If you can save 1 hundred dollars a month, you'll have it by the end of the year."
Next, pay off any debt. Each month, make an extra payment and negotiate lower rates. Then when it comes to paying the bills, pay them online. Not only will you save on stamps, you'll earn more interest from your bank.
Ruth:"What that will do is pay the bills exactly when they are due. Not too early where you would lose interest on the money that's in your savings account and not too late where you might incur cost in fees and late charges."
Of course, an even better way to save is put the money away before you even see it. At number 2, increase your 401 k contributions.
Ruth:"An increase of even 1 percent is something that you're not going to miss in your paycheck, but it will make an impact."
And the number one way to save for the year is have at least 5 to 10 percent of your paycheck placed into a savings account automatically.
Ruth:"Once you do it, it's done and you'll be surprised at how much money you've been able to accelerate over time."
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