Saving money is not easy, but years ago I learned an invaluable lesson. I was on a coach trip and one of the ladies told me that whenever she got a raise, she put that increase away in a savings account. She was on a fixed income and she said (mostly rightly) that if you had lived on that income for a year, then you could live without the raise.
So what I do is when I get paid once a month, I only put down in my check account balance the amount that I earned last year. And I work from that, only. If an emergency does come up, I do use it as I have that extra cushion that I have squirreled away each month. It is not as hard as it seems. If you get lots of money for your raise (could you adopt me?), then put a percentage away, say fifty or seventy-five. It really is quite painless. Again, I always had two/three and sometimes four jobs.
Another tip is when you receive your raise each year, increase the amount you are putting into your 401k. Even if you increase just 1% it will show in the end. I work with retirement plans and this is something that our company has started to use in marketing material and educational meeting with employees.
I'm extremely frugal, but one problem we've continually have these past few years, is that my husband will get a raise of say .25 per hour, or $10.00 per week. Not much, but still appreciated. Then, at the same time, what he pays on his health insurance will go up $15.00 per week, so we're already living $5.00 per week less than last year. This has happened at least the last 5 years. We're living on less than we were 5 years ago, and utilities and such are going up all the time. Things have always been hand-to-mouth, but I simply do not know what else we can do without. It gets so frustrating. We always seem to get by, but the last time my husband was hospitalized was extremely stressful. It made me realize how easy it could be to lose everything.
hi I kinda like the idea but it will only work if we have our heart set to have a future plan and save on how we want our future to be. we as a family had it hard so no extra team sports were paid for but our children had school sports and dad took them running and play in parks when we worked on our budgeting to see when we would be able to have money to put to a vacation or family events weddings and extras. we did not do some of the regular things some families do like birthdays we talked to the family and told them every day we love that we had them and we will do all things together and life will be fun and share all calibrations of love and kindness. how we talked and walked in our life showed the children how much they are wanted. so that saved money and we gave to those in greater need then us in our small ways but our family learnt to look at others hurt and see how happy they should be .
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If you get a pay raise, or a bonus, pretend you didn't get it and continue to live within your previous budget. Put the extra money into savings every month.
By Kathy Y.