How to Increase Your Savings During Tough Times | Lifestyle

How to Increase Your Savings During Tough Times

by ShaunConnell

Upping your savings is always a good thing, though it might not be the first concept on your mind when times get rough. It often feels as though the only financial tips you'll ever see are gurus claiming that you should put money into your savings every time you get paid. But unfortunately, these days that is simply impossible for most people.

Let's look at the facts:

-The median income in 2007 for households was just a bit more than $50,000.

-Almost 40 million people live below the poverty line in the US, with a median income deficit of almost $9k. An income deficit is how much one's income is below the poverty line.

-Nearly 46% of Americans live without health insurance.

The above facts allow us to understand that many, many Americans are simply unable to save money because they don't have the money to save in the first place. You may or may not be part of these categories of people -- but perhaps you'd like to save money and aren't able to simply because you don't' have the money to do it. Remember, when it comes to financial planning and personal finance, almost anything is possible. You can save money almost regardless of your situation.

Remember the childhood story The Little Engine That Could? In the story, there was a little blue engine that was charged with the great task of pulling a heavy train over a mountain. The little struggled and strained, but ultimately made it over the mountain by repeatedly saying, "I think I can."

Think back to the stories you learned as a child, such as the little engine that could. In the parable we read of the little blue engine that was charged with the great task of taking a large train of toys over a mountain to the children on the other side. The little engined struggled, and it seemed impossible to achieve its goals -- but in the end the train succeeded because it refused to accept defeat, and told itself, "I think I can, I think I can."

You might not be as broke as you feel, but if you're not disciplined with your money, you could spend it all before your next paycheck comes. If you aren't paying attention to where your money goes, you could think you're spending more on expenses than you really are.

You might actually not be as broke as you feel, incredibly enough. If you aren't extremely disciplined with your money, then you could be spending it in small ways you hadn't considered before. By noticing and tracking every dime you spend, you can find pockets of waste, and financial mistakes. This step alone could save you hundreds or even thousands.

Then, go back through your expenses and categorize your spending. Then, add up what you spent in each category. Take note of any categories with high spending, especially for things like entertainment. That kind of spending can easily be diverted to savings.

When you look at your budget, the numbers might indicate that you couldn't possibly save a single penny. And based on your current expenses, that may be true. But, there are ways you can cut back your spending, even on things you need to spend money on.

When it comes to cutting back, sometimes you have to make some tough decisions about what you're spending money on. For example, you can't just ditch your car note, but maybe you can trade-down to a cheaper model. The same thing goes for your mortgage payment. While you can't just stop paying your mortgage, you may be able to shop around for a home with a lower mortgage payment.

Look at every single expense in your budget and evaluate whether you could switch providers for a lower monthly cost.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Once you start to save money, you can go the next step with your own online savings account. The Internet is filled with ways to get more great free financial planning advice.