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The “B” Word

A Tool To Help You Build The Foundation For Your Savings

Do you find saving money a challenge? Do you often wonder how you will be able to ‘scratch’ together enough money to pay off your student loan, your first car or your dream trip overseas?
If so…this is the article for you!

You hear the term “budget” in the media so often you tend to filter it out. But it is time to start listening and using this tool to take control of your own personal finances.

One of the biggest challenges for young people these days is saving money. A great starting point for any type of savings plan is determining how your money is being spent. We are all guilty of impulse buying. The key to breaking this habitual drive to be a mass consumer is to ask yourself at that time of impulse is…“Do I really need this?”

By taking control of your spending habits you can see what, or how, you can eliminate unnecessary purchases…even though at the time they probably feel like very necessary purchases.

This snapshot of your finances is called a Budget. This is a prediction of your income (money you make) and expenses (money you spend). Budgeting can help you gain control of over spending, help you plan for the future or help you overcome financial difficulties. By taking control of your finances now, you will feel more confident with your finances in the future.

Budgeting does not have to be a restriction on yourself. By becoming conscious of your spending habits, you are making an effort to help you save for any short or long-term goals. Whether it’s the goal to have a little spending money for an upcoming vacation or a large chunk of change for a new ‘to you’car.

You can try doing a basic budget at home by subtracting your expenses from your income or use the internet where you can find a variety of calculators that can do the work for you. Check out www.zippitydodog.com, ‘Sites of the Month” for direct links.

When you start throwing down your numbers you must be realistic, honest and accurate and not base your saving and spending habits on desire. This allows for more accurate results that will be easier for you to manage and goals that will be more attainable.

Set yourself up with a short-term goal that you feel you can reach. By saving a little and watching what you spend you will be able to realize that goal and your saving successes will continue from there. You will then have the confidence to set the bar a higher and saving will become a very rewarding habit.

Some tips to get you started:

• Start canning and rolling all that loose change lying around.
• Pay yourself first. Before you spend it, save it.
• Restrict access to your savings with your debit card.

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