Save for a Rainy Day

As the price of everything –from rice and meat to eggs and gasoline – reaches record highs, we can only wail in despair. If I couldn’t save anything before when everything was cheaper, how can I start saving now?

Yes, you can do it! What’s more, most people already know what they should do but don’t exert the effort to stay true to their resolve. Having the discipline to follow through with your plan is the great challenge.

Here are some pointers for freeing needed cash, achieving financial stability, saving for your future:

• Find out the cause of your financial hardships. Itemize every expense you will make for the next months and classify whether it’s a need/want.

• Scan your needs list. See which can be altered without affecting quality of your life. For example: To cut your electric bill, turn off the lights and appliances when not in use.

• Review your finances. Go over your assets and liabilities, income and expenses and see how you can realign your finances to come up with huge solutions. For example, you can pay off accumulated credit card debt by borrowing from your insurance policy.

• Make savings a fun habit.

• Get out of debt. Pay off any huge outstanding high-interest debts before you open a bank account. The savings gained from cutting your interest charges will be more than the interest gained from your savings interest.

• Recycle and resell. Hold a garage sale for your unneeded clothes and home stuff. You can also sell old magazines, newspapers, books and bottles to the junk man.

• Learn more about saving and investing. Read books and magazines, visit personal financial web sites or attend free seminars on investing. Be wary, however, of get-rich-quick schemes.

• Cash is king. The less you spend, the better.

• Earn extra income from something you love to do. Indulge your creativity by making accessories, writing articles on the side, or creating your own web site. Then hawk hem to your friends, publishers, or sponsors.

• Use credit cards wisely. Leave no balance date. Also, try asking you card issuer to waive their annual dues. You’d be surprised how may issuers agree, especially if you have a very good credit standing.