You Can Save Money Even When Times are Tough | Lifestyle

You Can Save Money Even When Times are Tough

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.

Just think about this:

-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.

Take one month and and write down everything you spend money on, down to the penny. Save receipts from purchases and cash withdrawals. You can also use your bank statement if you use your debit card or write checks for your transactions.

Simply take a month and write down every expense as you stumble into it -- all bills, meals, fuel, movies -- everything. Save all of your receipts and withdrawal tickets. Save your bank statements if you use a debit card. Save everything.

Now go back through all of your spending at the end of the month. Categorize it all. Add up what you spend for each category. Notice any of your categories that include especially high levels of spending, such as entertainment -- areas like these are your best shot for cutting down to put towards a high-interest savings accounts.

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.

Before you move on with your life, be sure you have found the best savings accounts that the author of this article has researched. With one of these accounts, you'll be able to put your savings on automatic.