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Give Yourself a Raise
Small Ways to Increase Your Income
Would you like to know how to get ahead of the game in the modern economy? Most likely, you feel like you don’t have high expenses in light of your monthly income. But you seem to be losing lots of money fast.
If you can’t secure a higher salary, how can you boost your financial situation? Why, you can give a raise to yourself!
When it looks like you may be facing a financial abyss, the best thing to do is to take a few action steps:
1. Reduce your spending. Cutting back on shopping is obviously the first thing to do, but it is also wise to reduce your bills.
- Paying for television and premium television packages are examples of some regular expenses that the majority of people can live without. It is possible to view all your favorite television shows at no charge when you use an antenna or take advantage of Hulu.com. If you have a cell phone, cancel your landline. And lower your utility bill by taking advantage of the monthly budget plan most providers offer.
- If you have a dog, there are a few things you can do to economize on your pet expenses. Learn how to groom your pet on your own so that you don’t have to visit the groomer so frequently. Go to Petsmart or other large stores for flea repellent, not the veterinarian’s office. Another way to spend a little less is to buy dry pet food instead of food in cans.
- Making your own laundry detergent is one unusual way to economize. Many households spend ten to twenty dollars each month on just this product You can make an equal amount of detergent yourself for less than two dollars. If you can save $18 a month, at the end of the year, you will have saved $216.
2. Start saving even more. Each dollar that doesn’t go toward your monthly expenses should go into your savings. Of course you will find it tempting to buy things. But keep in mind that any money you save now is money that will be available for you to use at a later date.
- Add savings to your list of fixed monthly expenses? You wouldn’t dream of not paying rent or payments on your car, so why wouldn’t you do the same for your savings?
It is possible for you to save $200 per month, which equates to $2,400 per year if you utilize the tips described previously. How might an extra $2,400 improve your life? It can help tide you over if you should lose your job or face a medical emergency, or it may pay for car repairs you didn’t plan on having to make. In other words, you are receiving a $2,400 annual raise just by saving $200 per month on your daily expenses.
Reasons That It Is Important
It is just as critical to make a monthly savings deposit every month as it is to pay your rent, your car payment or utility bill, or to buy groceries. If you don’t have a financial safety net, it is likely that you will live from one paycheck to the next for the foreseeable future.
Growing your savings account is akin to receiving a raise because you will have more disposable income without working longer hours. While you now have the ability to live simply, you also can upgrade any aspect of your life that you wish when you decide to do so.
The Savings Plan
Make the decision to implement money-saving strategies, and add 75 percent of your disposable income to your savings in addition to the monthly savings on your expenses. This means that if you can tighten your belt and reduce your expenses by $150, and your monthly disposable income is $800, you can add $750 to your savings account every month.
If you do this for only 12 months, by year-end you will have amassed $9,000. Do this much for five years, and you’ll have saved an extra $45,000. After 10 years, you will have $90,000, as well as money from accrued interest!
The plan described above provides you with monthly disposable income of $200. Although $200 may seem like a small amount when it comes to entertaining a family of three, it is possible to find cheap or free activities that help reduce the costs of entertainment.
Other ways to save money on entertainment include choosing to attend a matinee instead of an evening performance or frequenting a drive-in, which charges by the carload or per adult occupant. When dining out with your spouse, share the same plate.
You’ll need to spend a lot less on inessentials. But are you willing to do that for $9,000 in disposable income? If $9,000 isn’t enough, how about $45,000? How about having saved $90,000 in 10 years’ time… …or, after 15 years, having $135,000 or more — six figures — in your account?
Once you realize the long-term benefits, forgoing some luxuries now is more than worthwhile. You’ll thank yourself in the end!