Tips for Saving Money for Your Savings

Bianna Golodryga wrote an article a couple years ago reporting the large number of Americans dipping into their retirement savings decades too soon. Reasons ranged from paying off loans to funding a child’s education to just getting through everyday life.

The economy made it hard for a lot of people to just survive. Bianna Golodryga referred to the rise in hardship withdrawals, which consists of emergency money taken from a retirement account and typically needed for immediate, heavy financial burdens.

To avoid dipping into your retirement savings too early, here are a few suggestions to better save money.

·         Quit smoking. Depending on the taxes you have to pay per pack, you could save up to $2,000 a year by quitting. After you quit, you will also be eligible for cheaper life insurance rates. Cutting back on alcohol will also save you quite a bit of cash.

·         Be careful of using credit cards, or don’t use them at all. Pay your credit card bill on time and in full every month. If you are constantly experiencing late fees, contact your bank to change the due date of your credit card so that you won’t have to pay until after you’ve received your paycheck.

·         In general, meet all your due dates on time, from student loans to mortgages. You don’t need that extra fee hanging over you.

·         Get rid of incidentals. If you find yourself paying monthly fees for club memberships or subscriptions you don’t use, you’re wasting a good chunk of your income. Get rid of that cable service if you rarely find yourself in front of the TV.

·         Reevaluate your everyday expenses. Instead of eating out at work, pack your own lunch. Try commuting to work every so often. You’ll save on gas and public transportation takes a bit of that morning commute tress off your shoulders.

·          Keep track of your spending. Check your monthly statements and see where your dollars are going. Consider how necessary all of those expenses were.

·         Avoid impulse buys. Give yourself a 24 hour waiting period to think about the necessity of that purchase. You can prevent buyer’s remorse and potentially save yourself quite a bit.

·         Set both long-term and short-term goals for your saving.  These are much easier to stick to than a large, unspecific savings plan. Save for a down-payment on a new house as well as an emergency fund for the car, along with vacations and other various goods.

·         Save loose change. It adds up. That penny might seem useless now, but that’s another cent in your pocket.

Bianna Golodryga notes that the rise in hardship withdrawals is connected to the economy and the state of unemployment. Hopefully as both steady, you won’t have to worry about dipping into your savings.