Financial Planning: How to Save Up to $10,000 a Year

If you’ve always dreamed of owning you own home but don’t have a clue how you’re going to save up enough for a down payment then I’ve got some good financial planning tips for you. No matter how much money you need to save or how much debt you have you can effectively learn to save with the following money saving strategies.

Financial planning is more than just deciding what to do with and where to invest large sums of cash it’s also about coming up with a plan to achieve your financial goals.

And saving money isn’t hard once you’ve set your goal and have something concrete to work towards. All you really need is a little creativity and the determination to stick to your plan.

Following are some common sense ways to save. Now no two financial situations will be the same so your results may vary. The important thing to note however, that it’s the small changes done over the long term that can really add up. The key is to take the money you’re saving here and there and put it aside so it can accumulate and make you some interest. (I’ll write more about investing in another post.)

For now let’s look at the small things you can do that over the course of a year can find you up to $10,000 richer.

Brown Bag it. Taking your lunch to work makes good personal finance sense especially if you’re trying to save. The key to really saving is not to forget to pack a beverage. This will save you the daily cost of going to a vending machine or a local coffee shop. Try taking your lunch and snacks (including all your daily beverages) to work for a month and then keep a record of approximately how much you’re saving each day. By the end of the month you may surprise yourself how a $10 lunch, a $1.50 pop and a $2.25 coffee adds up.

Pay off your debt. Getting out of debt is like receiving a windfall because you finally stop paying interest. If you continually struggle with credit card debt, get smart and get rid of your high interest cards once and for all! Cut them up then transfer the balances to a card with a low rate and pay as much as you can afford each month. Remember the more you can pay each month, the more you save in interest over the long term.

Save your pennies. Dropping your loose coins into a jar at the end of the day can really make a difference to your financial bottom line. Use this money to pay down your credit card debts or if you don’t have any outstanding payments put it directly in your savings account.

Ask for lower rates. Sometimes all it takes is a phone call to your creditors to see if you can get a lower interest rate. It doesn’t hurt to ask. The worst thing they can say is no.

Don’t stop making payments. Just because you’ve paid off your credit card or loan doesn’t mean you should stop making payments. Instead send your payment amount directly to your savings account. An extra $200 a month in a savings account alone will yield you $2,400.

Make each tax deduction count. Keep receipts for everything and claim anything and everything you can. If you get in the habit of saving and organizing every receipt you receive over the course of a year you could find yourself with a hefty tax return of up to $3,000.

Use money management software. You may find even more ways you can save by organizing your personal finances better. Money management software can be a great tool to help you track what comes in vs. what goes out as well as certain positive and negative spending habits you may have.