When you find yourself in the situation of needing to save money, you may hear someone suggest that you save 10% of your earnings. This may seem like an easy task; after all, if your weekly earnings equal $400 after taxes, saving $40 does not seem like a bad idea. However, that $40 may come in handy to fill your gas tank or to take care of a few items on the grocery list. As the economy continues to threaten financial stability, many may find it more difficult to save 10% of their earnings if saving any at all. Here is a possible solution to your saving woes: try saving 5% of your income and decreasing your expenses by 5% as well. The two percentages equal 10%, but splitting that 10% into two categories will save you more money that you would ever expect. Keep reading for more information on the solution to financial freedom.
Save Only 5% of Your Earnings
Some people believe that in order to save money, a huge chunk must be taken from your weekly or biweekly earnings. This is untrue. Although saving a big amount will seem like there is more money in your pockets, other areas of your life suffer as a result, including the payment of bills, the things that you can purchase, and other things. Instead, consider these solutions to financial freedom that will up your earnings and the ability to save more money.
- Match the Job’s Retirement Plan
When you begin putting money into a retirement fund, allow the company you work for to match the percentage you are saving for retirement. This money is absolutely free. With your company matching the percentage that you are putting into your retirement plan, you will find that you will end up with more money. This is a great solution to financial freedom.
- Increase your Workload
Working 40 hours a week is the normal number of hours and will usually make you decent money. However, increasing your work hours is a great solution to financial freedom. It will give you more money to work it, as well as extra money to set aside for saving. Getting extra hours may include working extra hours or days, both resulting in overtime pay.
- Increase Your Work Skills
The more skills you have, the more likely you are to receive job promotions and raises. Another solution to financial freedom is increasing your job skills. There are several ways of doing this—you can receive training in other areas of your job or even seek out different certification you can obtain while on the job. This will not only potentially increase your income, but also alert your boss that you are serious about your job.
- Work More Than One Job
Having a part-time job is a solution to financial freedom in more ways than one. It can provide you with extra income, or it can be a temporary back-up if ever you were to lose your full-time job. Either way, it will be a great way to save money.
Decrease Your Spending by 5%
Cutting your spending amount may seem impossible for someone with a ton of bills or debt to cover. It is a common suggestion that many people ignore because regardless of how much you want to save, spending money is a must. Take a look at these solutions to financial freedom that involves decreasing your spending.
- Cut Down on Household Bills
This may seem impossible, but it can happen. A solution to financial freedom is to determine what bills can be lowered or even taken away. For instance, you may discover that there is another cable company that offers a lower price, or you may want to plug in fans instead of turning on the air conditioner on days that are not too hot.
- Get the Best and Lowest Insurance
Another solution to financial freedom is to get the best deals on insurance policies. Some companies offer a discounted price on bulk insurances. Switching to insurance may result in a discounted price as well.
- Decide to Do It Yourself
When you enlist the help of a professional, you end up spending more money than you would have if you were to do the job yourself. For example, do your own yard landscaping or style your own hair. This solution to financial freedom will keep money in your pockets and out of other people’s pockets.
- Decrease Your Tax Bill
Being aware of your possible tax deductions is a good solution to financial freedom. This could save you a good bit of money come tax season. For example, having a retirement fund could qualify as a tax credit or a deduction. Conducting research or asking your tax preparer will help you determine which deductions will work for you.
In conclusion, it is only possible to save money if you are determined to do so. Saving 10% may be an impossible task, but if you save 5% and cut your spending by 5% as well, you will find that saving money is a walk in the park. So, save and watch your pockets swell with money.