With five dollar gas around the corner for the U.S. it is vital to be prepared for whatever is about to come. It is time to do exactly what the title says, save money, reduce debt, and build wealth. I’ve mentioned before that banks will start charging service fees for banking at their institutions and if you have not already started receiving them, watch out because there is more to come!
It is being said that the United States will average about $5 per gallon by this upcoming Summer. Folks, that is literally three months away. Gas is going to start killing our pockets. We have already been hit once at the grocery stores, we have been hit by the financial institutions, now we will be hit with gasoline prices, what else will be next. Soon, it will be more of a struggle to survive. You need to start preparing NOW!
I can think of two immediate ways to start saving without you being effected too much.
First, a good amount of employees had their annual performance reviews in the month of February or will have their annual performance reviews in the month of March. Employers who have showed revenue for the 2010 fiscal year will most likely add an additional bonus to their employee’s 401k retirement plans or award them with a pay raise or both. Generally pay raises can range from 1-5 percent sometimes up to 14%. However, if you do receive a raise take it as a bonus, you may have expected a raise but had no idea what you were going to receive. Why not use that additional bonus and save it? If you received a 3% bonus save 3% every month. Open a savings account with whatever the minimum requirement is to avoid service fees. Who cares how small or how large the amount is. Yes, we can all use the additional money but, you were surviving off of whatever you were making prior to this bonus you have just received. Remember, a bonus is not automatically given to you. You’ve earned it, why not pay yourself first? This is one way to save without reducing your paycheck.
IT’S TAX SEASON; The moment some of you have been waiting for allllllll year around since last tax season. Take this as a huge opportunity to save especially if you are fortunate enough to receive a tax refund! At times you can receive thousands of dollars back but instead of spending it on a new wardrobe or paying bills or just spending it so fast on you have no idea what happened to it, SAVE IT! I am not saying there isn’t anything wrong with buying nice things for yourself, I am not saying that your bills do not need to paid, but once again I am saying that the economy right now is not a friendly place for everyone. Remember $5 gas, remember when bacon and eggs could be purchased for $5 at the grocery stores now it’s almost ten dollars! I remember a little over ten years ago gas was $0.96 per gallon. We need to be prepared. Save at least 50% of it and have fun with the rest. Then go back to the paragraph before and start adding your performance bonus to it. Pay yourself first.
Start little. $20 a pay check, then 25, 30, 50, 100, 150, 300, gradually your account will grow and you will become more responsible with your finances. Figure out the things you are willing to cut out and find the things you are not willing to cut out and go from there. That extra bit of savings can go a long way. It may even fill up your gas tank one day. Just take heed for what is about to come. Go back and read the blog on bank service fees and join ING. Best practice for savings is as simple as six little words. OUT OF SIGHT; OUT OF MIND.
Now start saving!!!!
Open an Orange Savings account…. http://home.ingdirect.com/index.html