{"id":405,"date":"2022-07-04T08:21:51","date_gmt":"2022-07-04T00:21:51","guid":{"rendered":"http:\/\/www.druryjournal.com\/?page_id=405"},"modified":"2022-08-01T19:12:39","modified_gmt":"2022-08-02T02:12:39","slug":"how-to-save-money-and-make-your-income-go-further","status":"publish","type":"page","link":"https:\/\/www.druryjournal.com\/?page_id=405","title":{"rendered":"How To Save Money and Make Your Income Go Further"},"content":{"rendered":"\n
During these times of turbulence and high inflation, there probably very few subjects more relevant than this one. Yet we sometimes tend to gloss over certain spending\/saving habits that have proven successful, time and time again. Let\u2019s talk about a few of them here.<\/p>\n\n\n\n
Have a savings plan and stick to it!<\/span><\/strong><\/p>\n\n\n\n
Regardless of your source(s) of income, set aside a certain amount or percentage of your income as soon as you start earning, and then immediately invest that money. Thanks to the benefit and leverage of compounded earnings, you will earn more money (over time) on your investments than the total money you contribute out of your paycheck!<\/p>\n\n\n\n
Example #1: If you invest only $1000\/year for 30 years, you will contribute $30,000 of your own money. At a conservative 5% annual return rate, this investment will add another $39,761, bringing your grand total to $69,761 over that 30-year period \u2013 a 133% increase to your initial investment!<\/li>
Example 2#: If you invest most of your money in stocks, you can normally expect more like 8% average return per year, which will bring your total to $122,346 \u2013 a 308% return! And you don\u2019t have to be an investment wizard to do this \u2013 a simple S&P 500 index fund would be an excellent choice. Most investment companies (e.g., Fidelity Investments, Charles Schwab, Vanguard, etc.) offer this investment staple, and it\u2019s easier than opening a checking account! The key is to choose an institution that has low fund management fees.<\/li><\/ul>\n\n\n\n\n<\/figure>\n\n\n\n<\/figure>\n<\/figure>\n\n\n\n
I know, many live hand-to-month, and therefore it\u2019s hard to set aside even the slightest amount. I totally get that. One less painful way to save would be to have your employer take the money out of your paycheck and put it into a 401K. That will automate your savings rate, and you\u2019ll never see the money hit your bank account in the first place. I know, that still doesn\u2019t alleviate the hardship of taking home less money. However, this leads to my next point \u2013 a penny saved is a penny earned!!<\/p>\n\n\n\n
Shop Wisely<\/span><\/strong><\/p>\n\n\n\n
Whenever you shop for anything \u2013 large or small \u2013 ALWAYS look for the best value. This may sound daunting at first, especially for the many small, everyday things. But it\u2019s really quite simple. Just keep these things in mind, and I just know you will soon find extra money to save and invest without having to sacrifice anything:<\/p>\n\n\n\n
More often than not, it pays to buy consumable items and non-perishable foods in quantity. So, if you\u2019re looking for a bag of rice, always start with the biggest bag. Of course, it will also have the highest price tag, but you\u2019ll be paying less per pound, thereby saving money over time. Warehouse memberships like Costco and Sam\u2019s Club provide high saves most of the time in this area.<\/li>
More often than not, grocery store brands (e.g., Kroger, Stater Brothers, Albertsons, Food Lion, etc.) are almost always considerably less expensive than their name brand counterparts. So, unless there is good reason to go with the name brands, buy the store brand. It can shave a good 10%-20% off your total bill, and this really adds up over time. To this point, I have personally found that Costco\u2019s \u201cKirkland\u201d brand offers exceptional value \u2013 very high-quality products at a significantly discounted price.<\/li>
For the bigger ticket items, always do your homework and comparison shop first. And be sure to look for the best value, not necessarily the cheapest price. A few years ago, I bought a cheap pair of shoes that looked really good. However, the soles wore out in less than 6 months! Then, I bought a pair midrange in price, and they lasted for more than 2 years!<\/li><\/ul>\n\n\n\n
When deciding whether to buy something, always separate \u201cneeds\u201d from \u201cwants\u201d. For instance, most of us need cars for our everyday transportation needs. This doesn\u2019t mean it has to be a Lexus or a Mercedes \u2013 maybe a Honda Accord or a Toyota Camry would do just fine in meeting our basic need for safe, reliable and comfortable transportation.<\/p>\n\n\n
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