Cook Wealth Management Group

Save More, Spend Less

Saving MoneyRegardless of income or tax bracket, we all want to save more money.  In light of all the timely talk about new year’s resolutions, here a few ways to pursue the common goal to spend less.

Live on a Budget

How much do you spend monthly? How much do you earn monthly? Depending on the deficit, you may consider a number of options, from downsizing (smaller home, cheaper car) to simply altering your purchase habits. A detailed budget can yield tremendous value; Yahoo! Finance columnist Laura Rowley writes “A clear and accurate picture of your spending will help you spot the money leaks, make a clear-eyed evaluation of the value of your buying, and make changes to get more happiness from your expenditure.”1

Envision Your Future

What exactly are you saving for – besides a rainy day? Envisioning your ideal life can be quite motivating. Putting money away may prove easier when you ponder its potential purpose:

  • Your child’s education (Will she attend state school, or go private, or Ivy League?)
  • Your desired retirement age and lifestyle (59? 52? Will you relocate? Where?)
  • Your legacy (Will you give to a charitable organization? Will you start your own charity?)

Even if you’re not much of a planner, thinking about your goals can encourage you to save more.

Save!

According to the Bureau of Economic Analysis, at this time last year, consumers were saving about a penny of every dollar earned.2 That’s not much! The personal savings rate rose to 6.2% in May 2009, only to fall back to 4.6% in June. Though a substantial improvement from last year’s <1%, this decline may indicate Americans’ new saving habits are not here to stay.3 Strive to save more! If you know you’ll be tempted to debit from your checking account, set up a monthly partial direct deposit of your paycheck into a high-yield savings account, or see your financial advisor for more options.

Happy New Year! And happy saving!


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