Cutting Cost

By Darla Youngblood

Do not save what is left after spending, but spend what is left after saving-Warren Buffett

This is the best idea of what we need to do to save money. Always pay yourself first. In other words , set aside the same amount of money out of each paycheck for savings. Do this first before spending your money on anything else. This gives you security and you can set a goal of what you want to save for rather than to quickly buy something on credit. By doing this it delays you buying something that after thinking about it over time you may either decide not to buy it at all or use the money to save for something bigger like paying cash for a car or your vacation each year. By paying cash for a car you own it without the monthly payment so your money is free each month for other expenses. Or saving for a vacation that you pay for all in cash and don’t have any regrets like you would if you put it on a credit card and have to pay that out over time plus interest. Another thing that’s important to save for a little each month is Christmas each year. We all know it’s coming each year so why not put some money back each month into a special fund or place so you pay cash for Christmas and don’t have those ugly credit card bills in January so you start the new year off without debt for Christmas . It’s always good to have a goal of what to save for and work on paying off debt so you can become debt free. Then you can save for retirement and other big things you know you will need or want to do. Goals for every part of our lives is always good to do but especially with our money. So think about an amount you want to save out of each paycheck and always pay that first. You will be surprised how quickly that savings adds up to give you security and peace of mind.