Keep An Eye On Your Money

How can those who currently aren't saving afford to save money? And how can those saving only a little save more? Here are the top 3 saving strategies when you are on a tight budget.*

 

Need some help? Here are 10 saving tips to help you follow these saving strategies.*

Cut spending painlessly.

Tip 1: To find small savings that add up to big savings over time, keep a careful record of all (and we mean all) of your expenditures for a month. You may be surprised to learn how much you are spending on such things as a daily latte or restaurant meals.

Tip 2: Comparison shop on necessary purchases such as food, transportation, and insurance.

Tip 3: Restrain spending for birthdays and holidays, especially Christmas. A few well chosen gifts are likely to be more appreciated than a more costly pile of gifts chosen thoughtlessly in a shopping mall foray.

Reduce High-Cost Debt

Tip 4: Payday loans typically charge interest rates of 500 percent, and the interest rate on credit card debts can run 25 percent. You can save hundreds, perhaps thousands, of dollars a year by paying off these high-cost debts. For help, contact any of our partner credit unions located in El Paso, TX. Click here for a list of partner credit unions and their contact information.

Tip 5: Build an emergency fund to avoid having to take loans to pay for unexpected purchases. That fund is usually best kept in a savings account, despite the low interest rates such accounts pay right now. But do try to keep a high enough balance in the account to avoid monthly fees.

Tip 6: Ask your bank or credit union to automatically transfer funds each month from your checking to your savings account. Even as little as $10 or$15 a month helps. After all, that’s $120 or $180 a year.

Tip 7: Put all your loose change in a savings account. For many people, that could add up to well over $100 a year.

Take Free Money and Save It.

Tip 8: Low- and moderate-income workers qualify, each year, for an Earned Income Tax Credit that can put over $1,000, and often more than $2,000, in your pocket. Then be sure to save at least half of this windfall. Click Here for a list of free tax sites in El Paso, TX.

Tip 9: Participate in a local Investment Development Account (IDA) program. In return for attending financial education sessions and agreeing to save for a home you typically receive $2 for every $1 you save through an IDA program. So, $25 that you save each month ends up as $900 at the end of a year. Click here for more information on the IDA program in El Paso, TX.

Tip 10: If your employer matches retirement savings contributions, be sure to take advantage of that. Some employers match up to 100 percent of your contributions. While we encourage letting this money build up until retirement, it can be withdrawn, or borrowed on, to cope with serious emergencies.

*Savings strategies and tips are taken from America Saves “Saving on Tight Budget” . For more information on America Saves, El Paso Saves,  and more saving strategies and tips please click on one of the two links below. There is a Spanish and English version of the website.

Español  English