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1, 2, 3 of Saving
The first question people ask with respective savings is... How much money should be saved a year? There is not really a right answer for this question, however, if you can save at least 10% of your earned income a year you are heading in the right direction.

The number one recommendation in order to be able to start saving is to know where your money is going. There are three steps before we can actually start saving some $$$$$$ money.

1.- Make a list of all your expenses. This should include an allowance for entertainment,such as going to the movies, renting videos, buying CDs, eating out, etc.

2.- Identify all your monthly expenses including debts, allowances and expenses.

3.- Make a budget so you will know the areas where you can cut expenses and start putting money away.

Once you Identify these areas and work on the above three steps you should consider the following:

Reduce your liability as much as possible. Whether this is by consolidation credit cards, paying off your vehicle, making an extra mortgage payment during the year or refinancing your car or house for a better interest rate.

If you do not pay your credit card balance(s) in full every month, shop or use the card with the lowest interest rate.

Make the effort to put aside a set amount of money on a savings or investment account every month just as if you where making another hose payment or credit payment.

Shop for groceries only twice a month. If you have to go for groceries more often try doing it at the most once a week and limit your buying to items you need.

Buy clothes only twice a year, and once again buy only clothes you need.

Do the mundane jobs yourself... such as doing the yard, washing the car, bathing the dog, washing the windows, etc.

Yes we know these sound somewhat extreme, but you will be surprise on how much you can save if you just have a little discipline.

 

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