SmartHomeOwners

When you hear the word "savings" your heart might sink at the thought...knowing you should have been saving all along.  You want to make investments to secure your future and aid your retirement, but you just don't seem to have the extra money each month. 

We're going to show you six practical ways to save as much as 25% of your salary every month for investments.  But first, you'll need to calculate the amount to save based on your salary.  Take your monthly salary (after taxes) and multiply it by 25%.  If you earn $3,000 per month, this figure will be $750.  Then figure the percentage by the week.  This comes to about $173 per week.  To get a weekly figure, simply multiply $750 by 12 (monts) and then divide by 52 (weeks).  If you get paid monthly, you might want to save out the monthly amount all at once.

1.  Budget for Savings

This is number one because without budgeting, you might as well not even think about saving money.  Plan your budget based on living expenses, loans, insurance, medical expenses, etc.  Then add a spot for savings to include in your budget.  It's a simple way to commit yourself to save 25% of your salary each and every month.  When you get a paycheck, put your savings into an account or stock first.  Then plan other expenses based on what's left.

2.  Be a Frugal Shopper

Make wise decisions about purchases by seeking out the best deals.  Frugality can help you stay within budget after you've already taken out a savings amount.  Use coupons, shop at thrift stores and yard sales, visit stores when huge sales are going on, and choose the cheaper restaurants when eating out.  Avoid multiple trips to town to save on car gas and mileage.

3.  Entertain Wisely

Many families spend hundreds of dollars per month on entertainment.  Of course, you can't do away with family fun, but you can change how much money you spend on it.  Look for creative, less expensive ways to have fun - visit a park, play board games, buy outdoor activity gear for your yard, take bike rides, or have a picnic.

4.  Haggle for a Better Price

When shopping for big ticket items such as furniture, a vehicle or even a home, you should always haggle for a better price.  This could save you thousands on the overall price as well as interest.  Also, it will lower your monthly payment if financing so you can save more towards your investments.

5.  Save Tax Refund

One way to jump start your savings each year is to save all or a part of your tax refund.  Many people are overwhelmed with all the things they can buy with their tax refund.  Put a healthy portion of your refund into your savings, money market account, stocks or IRA before you go on a spending spree!

6.  Re-evaluate Your Household Bills

You'd be surprised at how much money goes out the window to needless spending.  Re-evaluate your spending to find out where you can cut corners and save more.  Consider your cable TV bill, phone bill (long distance in particular), utilities (energy saver appliances), a refinance of your home mortgage, extra fees such as ATM fees and late fees for movie rentals, etc.  How can you change things today so you can save more tomorrow?

These are not the only ways to save for investments, but you can get a good head start with these six ideas.  Saving 25% of your salary can help you build a substantial investment portfolio in just a short amount of time.  Look for easy ways to save this amount and start building financial security for your future.