As more credit card companies begin charging customers annual fees, now may be the time to put away the plastic and start paying for everything with cash. It might seem like a daunting task to rely on dollar bills, and even (yikes!) change rattling around in wallets. But with a little planning, this is one habit that could truly save consumers a lot of money.
How to Pay Cash for Everything and Start Saving Money
Go to the bank or ATM and take out just enough cash for the entire week's purchases...not a penny more. That will force consumers to start planning weekly expenses and help them see exactly where their money is going. Pulling out a credit card is too easy. People forget what they are buying and how much they're spending.
Even consumers who use credit cards wisely and pay their entire bills every month may tend to over-spend. But if the money isn't there, one simply cannot spend too much! So, gone are those impulse purchases and even those little "snacks" or extra lattes that many people tend to splurge on may be a thing of the past. Small purchases add up. At the end of the month it will be easy to realize big savings just by budgeting a little more.
Open a Savings Account with the Left-over Money
All that cash that is saved at the end of the month can turn into even more money by opening a savings account. Watch a small amount of interest grow into some serious savings that might have been whittled away using credit cards! And when that savings account grows large enough, consider opening a certificate of deposit or money market account.
How to Make Spare Change Grow
Take a cue from the kid with the piggy bank. Throw that spare change into a jar and watch it grow. Seeing a few pennies and quarters multiply into hundreds or even thousands of dollars can be very rewarding. Keep this money for a far-off goal. Use it to save for a house, retirement or even a dream vacation. Having long-range goals and creating a plan to realize those dreams will make saving money a whole lot easier. And investing won't seem like such an intimidating concept when one starts small. All it takes is a little spare change and some determination. Many wealthy investors who started with nothing and saved their pennies, watched until those pennies led to some serious assets.
L. Marie Dubuque - Based in St. Louis, Marie Dubuque is certified as a life coach. Her latest book, Emotional Spending: How to Break the Addiction is now ...
