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Simple Ways To Build Your Nest Egg

by Alonzo on January 26, 2012

We say we want to save money.

We promise ourselves this will be the year we create an emergency fund or swear up and down we’ll finally set up our IRA or 401K.

But we never quite get around to it. Saving money is harder than we think.

Consider these simple tips for putting more money in your nest egg.

Put your savings on autopilot. There’s an old expression that goes, “You can’t spend what you don’t have.” Every payday have part of your paycheck automatically direct deposited into a special savings account.

Experts suggest ten percent, but times are tough. Start off small if you have to. Transfer 5%, 3%, or even 1% of your paycheck. As time goes by, you can slowly increase the percentage. You’ll become accustomed to living on less as you watch your savings grow.

Find a jar or large piggy bank. Place it someplace prominent. As you return home every evening, simply unload your pennies, dimes, and quarters. By the end of the year you’ll have easily saved a couple hundred dollars or more. Simple and painless.

Want to build your nest egg a little quicker? Consider the dollar game. At the end of the night, reach into your wallet and remove all the single dollar bills and place them in a show box. As the year draws to a close your shoebox will have a nice little stash waiting for you.

If all else fails, eliminate one thing. We have so much. Smart phones, 250 channel cable television, gym memberships, weekly pedicures, dinners out. Pick just one and give it up. Trade your expensive smart phone plan for a basic no-frills alternative or cancel that unused gym membership. Now, instead of making a payment to someone else, apply the new found monthly savings to an emergency fund or rainy day stash.

Your turn. How do you save money? Share your tips. Leave a comment below.

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{ 3 comments… read them below or add one }

Ivy February 1, 2012 at 8:22 am

I think increasing your savings amount incrementally is a perfect idea for those who are getting out of the habit of not saving. I’ve set a goal of $250 every month for three months, then increasing it by $50 each quarter. By then I’ll be saving $400/month, which I hope to keep up until I graduate. I may throw in a couple of hundred dollars just so I can reach my goal of $4K.

Great article!

Alonzo February 1, 2012 at 2:39 pm

I love how you think Ivy. I think setting financial goals as you have is CRUCIAL to saving money.

Marty March 25, 2012 at 9:52 am

A good way to build your monthly savings is to evaluate some of your basic monthly expenses and switch to the leaner option. Here are three we all can undertake:
(1) Switch from cell phone contract provider such as AT&T or Verizon to prepaid plan such as TracFone, which has one of the lower costs per minute at just 3 cents. This can save you about $80 a month and the quality is sure to be the same if not better! With just $20 a month it’s easy to budget and to manage without much effort. (2) Switch out of the all-inclusive cable to basic cable. Do you really need 100’s of TV channels. Most of us have our 4 basic shows – don’t let them sell you on what you don’t want! This can save you at least $30 a month. (3) Finally, switch from Blockbuster for $21 a month to Netflicks for $8 a month – this even allows you to access your favorite tv shows or movies from your computer! A savings of at least $10 a month. The overall savings for these 3 simple switches is $120! and the benefits are immeasurable!!

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