A Little Money Saved Goes a Long Way
The national trend is to borrow more and save less. Currently, the nation's personal savings rate is a negative one-half percent, something that hasn't happened since the Great Depression. A recent study commissioned by Consumer Credit Counseling Service, revealed that overall consumer debt increased 38 percent for households at all income levels last year.
How do we turn this trend around? Do what works! Save something out of every paycheck, no matter how much or how little. Have the money automatically deposited into a savings account or your 401(k) plan at work if you have one. Save some of your tax refund or part of your next raise.
Save a little; end up with a lot. Some people think they need to win the lottery or receive an inheritance before they will ever be able to save. Can saving $5 or $10 a week really make a difference?
Yes! Imagine a couple buying two coffees each per day because they believe neither one of them can make a decent cup of coffee. Four coffees a day, seven days a week at $1.79 each adds up to more than $2,600 a year. This represents a significant portion of their yearly electrical bill or payment towards an outstanding medical bill. It might not be coffee, but what do you spend money on that really is not necessary?
Cutting their coffee purchases in half by improving their home coffee-brewing skills would free up more than $1,300 in one year this couple could add to their savings. In 10 years this would result in over $14,000. Try this coffee calculator to see how much you might save, http://www.hughchou.org/calc/coffee.cgi.
The New Year is a good time to write a savings goal, and saving a little bit of money goes a long way toward helping achieve that goal.
Check out the new web site for financial questions http://www.extension.org/personal+finance.
Source: http://extension.unh.edu/news/2007/02/a_little_money_saved_goes_a_lo.html
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