The best way to save money
Money , Money , everywhere but I keep losing it!
Money makes the world go around, thats if you can keep it! There are a lot of things on the internet about making money but very few tell you how to keep it and make it work for you. The following have helped me get out of debt and keep a sensible savings plan but at the same time also letting me have a life too...
Money jars to the rescue!!!
One of the best systems that has worked for me in the past is the Money jar system. The jars comes from the depression era when people literally put their hard earned money into jars. You dont need to have jars for this to work. You can use envelopes or even different bank accounts (although you'll want to avoid charges) for this system , but anyway you choose to do this the core of the system remains.
Get six jars together. You dont have to stay at just six, but for the beginner, six is the magic number.
The jars will be as followed:
Jar 1) INVESTMENTS- In this jar you will put in 10% of your pay check. This is money never spent on goods or services. This is money that is meant to make you more money through investments and optimized interest-bearing accounts.
Jar 2) LONG TERM SAVINGS FOR SPENDING- Again, you will be putting 10% of your pay check into this jar. Think of this as the kind of savings you would do to buy a car or that big two week vacation you've always wanted.
jar 3) EVERYDAY EXPENSES- This jar will get 55% of your pay check and will be used on your everyday necessities like food, gas , rent , bills, etc...
Jar 4) EDUCATION- This jar is optional. For people with children this is a must. In this jar you will be putting in 10% of your pay check . This is your children's future. For the single people out there this is just as important because this will be going towards your own future, but this is entirely up to you.
Jar 5) FUN- This jar will get 10% of your pay check. This jar is important. This is the money you can feel happy about spending, since you have set up the other jars for the more responsible side of savings, this jar lets you go out and splurge on yourself without worrying about spending too much. This jar shows you that you can still have a life and save money too.
Jar 6) CHARITY- As much as saving is important, giving is equally as important. This jar takes only 5% of your paycheck. The rewards from this jar exceed the rewards of saving money for yourself.
The percentages given here are just a reference, you can adjust them to your needs, but this seems to be the best working model for most people. This simple system will change your current spending habits into a very healthy savings lifestyle.
Wheres your money right now?
What best describes your current financial state?
MY TOP THREE FAVORITE FINANCIAL BOOKS....
This book literally changed the way I viewed money for ever. Forget the hype you might have heard about this book, there are some solid philosophies through every page.
This is a great system for savings and making money. The authors really give you a good plan to follow..
One of my favorite books on saving money. Too much good stuff to list about this book. Lots of great advice.
Multiple streams of income....
The next step in getting that all important savings going is developing multiple streams of income. This could be anything form getting a second job to investing in stocks. The name of the game is to never depend on your core job as your only way of making money. If you think about it this is sound advice. Everywhere you look today you see plenty of people who are victims of losing their primary source of income. Having multiple incomes gives you a safety net that says if one source dries up than the other sources of income save the day.
Some things to consider as other sources of income are
Interest Bearing Accounts- --From money market accounts to Certificate of Deposite(CD) accounts, what ever way you like to save and make interest off your money, consulting with a financial advisor will get your money working for you.
Selling on Ebay or Amazon-- For the new and expert alike, selling your wares on these sites have a proven money making record for you to tap into.
Stocks and Bonds-- I know this type of investing scares a lot of people, but there are plenty of types of safe stock investing techniques out there that any broker can educate you on. Mutual funds are a nice safe way of getting into stock investments
Real Estate-- Forget Carlton Sheets, and forget what you've heard about real estate taking a dive, to this day real estate investment still accounts for some of the wealthiest people in the U.S. total assest value.
These are just a few ideas for you to ponder while considering your path to another form of income. Whatever you chose make sure to take action now.