Did you know we have the lowest saving rates in the world? Out of every $100 after-tax income, Americans save only around $5.70 for a rainy-day. That’s far too low when compared to the average rate of savings around the world which is around 10% to 15% of annual income. In an economy that lives and dies by the availability of credit, saving isn’t a virtue that’s encouraged. If you’re on the wrong end of the credit situation, read these tips for ways to save money:
Do you know how much do you really ‘need’ every month?
Not surprisingly, just 32 percent of Americans have a monthly family budget to track expenses and income. And only 30 percent have a plan for long-term investment. But what’s the point of a budget when you end up spending all the money anyway, you ask? Keeping track of every penny you spend helps control unwarranted expenses. How much do you spend on food and groceries? How much food goes to waste? How much do you spend on entertainment? What your biggest expense? A monthly budget also helps separate your needs from your wants.
Categorize your expenses
Create a hierarchy of spending. Rent, food, gas, insurance, etc. should be priorities. Sen. Elizabeth Warren in her book All Your Worth says the ideal spending formula should be to target 50% of your income on needs, 30% on wants and 20% on savings. Should you choose to spend more in one area, you’ll end up spending less elsewhere.
The average American family wastes around $650 worth of food every month. Almost half of the food we buy doesn’t even make it to the table! Look for inventive ways to make food out of leftovers. Learn how and where to store different food items to preserve them, and find out more on portion sizes.
Then find waste in other areas. Do you need a cable subscription with HD channels? Try to choose a data plan that’s just right for you. Why waste money on what you don’t really use?
When you need the money bad
Do you need to sell your home to pay off accumulated debt? If you’re in a difficult situation and are looking for an escape route, contact us. We buy houses in Milwaukee for cash. We’ll buy your property, regardless of its condition and location. Try us! Call us for a free, no-obligation quote.