Saving = Cutting Expenditures!

Posted by ECOKID on Jul 15th, 2009 | no comments home title

After “The Great Depression”, people held saving money and living within your means in high regard. All that moolah saved by our great grand parents, however, is just withering away in what seems to be a consumerism driven threat. It’s not uncommon to hear folks talk about the importance of saving these days. Seems to me that some of us actual fear not doing it! With the economical circumstances the way they are, I would not be surprised if you wanted to save a little incase things go wrong down the road. Saving ten percent of your check seems to be a useful common rule to follow. However, its not really all about just saving ten percent alone, there is more to the concept of saving than just putting a small percentage of money away simply because it’s a good thing.

What percentage should I save?

The god-honest truth is, there is no set percentage you should be saving. Even if it is common to save ten percent of your income, for some this is easier said then done. For others, saving ten percent is completely feasible. The rule-of-thumb is, make sure that you look at your expenses, take away the things that you don’t “need” and the stop spending money on them. This is a practice this often used by corporations. Looking through your expenditures and cutting expenses will generate disposable income that should be saved! Spend on what you need, save the rest!

“Live like no one else today to live like no one else tomorrow” (Dave Ramsey)!

Not keeping up with the Jones’s is by far the hardest thing to do! This is where you run into some trouble with your own personality. You begin to start taking a close look at yourself and wonder what it is you are doing with your money. Simply cutting expenses is difficult. You have to keep in mind that it is a must and that it should be done regardless! Don’t end up like those in the depression did before it occurred. Save, and you’ll find yourself being a better spender when it counts most!