Tag Archives: budget

Step 6- Save Money

Step 6- Save Money

Saving money is probably the most difficult thing to do. We have so many things pulling at us to spend our money on. So what is the best way to save money?

Let us examine why we save money and then we will get into the how of saving money.

Why save?

  • Future expenses, lets say you know you need a new roof next year or you are going to go on vacation. Then you will need to save for those future needs.
  • Unexpected expenses, flooding, wind damage,tnew car transmission. You need to have an emergency fund to cover things which are unforeseen
  • Wants. We have things we want to buy. Creature comforts
  • Needs. Those things we HAVE to buy in the future. We usually have to have the money first. These would be mortgage, car, utilities.
  • Retirement. At some point we are going to quit working and at this point we will have to have enough money or cash flow from other sources to cover the expenses

So we have all of these things we have to buy or want to buy in future, which is why we save money.

So how do we save money. Like most things it is easier said than done.


You have to determine where your money is going before you can decide where to trim or cut back. Everyone cuts back on the needs first and the wants second, because they want to maintain their existing lifestyle. You need to get rid of wants fisrt and the needs second. Turning off the lights help but it will not save you $50/month like cutting thhe cable bill.Places to cut- just to name a fewSportsDanceCableBetter cell phone planHigher deductibles on insuranceDoing your own maintenanceSewing your own clothesTurn up/down thermostat depends on seasonOne carTurn off landline features, call waiting, voicemail

A link to an Excel spreadsheet that has home budgeting is HERE. There is a default Personal finance theme in Apple’s Numbers program.

After you have a budget, you are able to best determine where your money is going. The remainder you have can be saved for various things. The important thing to do is to start saving. Where the savings go can be determeined at a latter date. We can do a whole post on the things which are important to save for.

Remember you are trying to save money.

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