How to Save An Extra 1,000 Dollars Every Year Without Really Trying

How to Save An Extra 1,000 Dollars Every Year Without Really Trying

Can you use an extra $1,000 a year like I can? For the average person, it always seems there is never enough money to put away because an unexpected expense always comes up and they just don’t make enough money to be able to save anything substantial. However, if you break it down, there is no excuse for the average person to be able to save at least $1,000 every year. You can do with it, whatever you want! Personally, I use it to either buy a few extra gifts at Christmastime when finances are really tight or I splurge on two long weekend getaways every year. It is totally worth it for me!

Although 1,000 dollars doesn’t go as far as it used to, it is still a nice chunk of change for anybody. You would be surprised at how many people are living paycheck to paycheck and rarely have extra money for anything. Theoretically, if this is you, you can save this amount of money over the next three years and build upon those 3,000 or so dollars so you can end up with thousands in your bank account in no time soon.

Here’s how:

1. Starting with your everyday purchases, come home and place all your loose change into a piggy bank. I use a large empty water bottle and I have a great habit of depositing all my change into it, including a dollar bill if I have one every time I come home from work or from a store on the weekend. Think about it; if you place a dollar in your piggy bank every business day of the year, that’s roughly 260 days ($260). Add to that your loose change and you should easily end up with at least $500 by the end of the year.

Of course, somebody’s going to read this It's a lot easier to save and extra 1000 dollars a year than you think.and say, “Wait a minute, so I have to put in a dollar into the piggy bank every day? Why don’t I just put it into a savings account?” I’ll tell you why. It’s a lot easier and safer bet to put at least one dollar a day into your piggy bank because you don’t have to make a trip to your actual bank and because human nature will oftentimes prevent you from holding those 10 dollars every two weeks and actually depositing that amount; you’ll probably end up spending it whereas with a piggy bank, you are forced to place it in the hole or coin slot and forget about it!

Total using this method = $500

2. Bring your lunch from home at least twice a week when you are at school or at work. The extra $10 a week you save here for a minimum of 40 weeks out of the year will easily give you another $400. Pretty easy, huh? Make sure you place those 10 dollars into your piggy bank every week and it will make you stick to the plan.

Total using this method = $400

3.  Cut your grocery bill by at least 15% by using your grocery store’s buy one get one free (BOGO) deals. If you have a family of four, you are probably spending 600-800 dollars a month on groceries; that’s the average for an American family! If you are single, you are more in the 60-75 bucks a week category.

Let’s say you only spend 60 dollars a week on groceries. If you can get at least 2 BOGO offers on your shopping trip, you can save 5 dollars on average, every single trip! When you are at the checkout, make sure you get change in the amount of your BOGO savings so you can promptly deposit that amount into your piggy bank when you get home.

Total using this method = 52 x 5.00 = $260

There you go! We went a bit over and saved $1,160 but I did that purposely to show how easily you can save at least $1,000 every year without really trying that hard. When you think about how often we waste a dollar here or a dollar there on ridiculous things we don’t need such as a pack of gum, beef jerky, or soft drinks, it’s easy to see how doable this plan really is! If you make it a habit to go out of your way to have even more change to place in your piggy bank every day, you can easily double your amount to well over $2,000 a year using this method.

Do you want to place this into overdrive? Then, save another $50 dollars a week automatically from your employer into a savings account not to be touched and at the end of the year, you will have another $2,600! You will end up with almost $5,000 in savings a year at which point you might want to consider placing some of that money in investments in the near future!

It’s a fact that most people live well beyond their means. You can still live it up while adhering to the methods above and not put a crimp in your lifestyle whatsoever. Saving money doesn’t have to be about being cheap; it’s about having a system and being consistent with it. You can still go out with your friends and pick up the tab when it’s your turn. Just be smart about knowing any extra money has the potential to be placed in your little piggy bank.

 

Does Paying Off Credit Cards Hurt Your Credit?

Does Paying Off Credit Cards Hurt Your Credit?

It is not easy at all to significantly improve your credit score but with a little patience and a lot of perseverance, you may be able to improve your score drastically. Paying off credit cards will not hurt your credit; on the contrary, it will improve as long as you don’t close the accounts.

For those of you who are frustrated with the mere mention of their credit score, even if you increase your credit by just 100 points, that can help you save thousands in interest charges on future loans of virtually any kind.

Does Closing Credit Cards Hurt Your Score?

Although you may hear a so-called expert every now and then talking about how you really can cancel a credit card without having it affect your score, it is simply not true unless you have had excellent credit history for many years. This is because even if you have a good credit history with a particular account, that information will no longer reflect on your score which means your score will go down slightly or substantially, depending on many factors.

Many people simply give up after a while when their credit suffers due to not having enough money to pay their bills but if you can gather yourself for a moment and keep your head screwed on right no matter how bad you think your finances are, here’s what you can do to improve your credit over time:

1. Start paying off one credit card at a time uClosing credit cards can usually hurt your credit score with few exceptions.ntil the balance reaches under $25.00. Start with the one with the lowest (not the highest) balance. When you are done paying it you will get an emotional boost that will definitely help you conquer your remaining cards. The closer to zero, the better. Then, immediately set that card on an automatic payment scheduled through your bank and monitor your progress.

2. While you are paying off your first credit card, try your best to pay the minimum balance on the other credit cards. I know this is easier said than done, but if you can swing it or come close to making it happen regularly, you will be one step closer to improving your credit score.

3. Try your best to automate your bill payments. If you can’t automate all of them because there is not enough income, automate at least one or two of them. Once your credit cards are all paid down you will find yourself in a great position to be able to pay all of your bills automatically.

4. Keep your debt utilization down. Once you have paid off your credit cards (this can take one to two years on average) keep the expenditures on your cards to no more than 30% of the available credit on each individual credit card. A technique many use once they pay off their cards is to use one credit card for everyday expenses (knowing they will be paid at the end of the month) and another card for emergencies only, like front row seats to that awesome “Prince” concert coming up!

5. Request an increase on your credit lines. This works well after you have paid down the debt on your credit cards and have maintained a low balance for a while. This will ensure you stay as close to under that 30% of your available balances on each card and will help improve your score.