Saving money - losing debt

There's one truth to saving money -- only you can do it. As gas prices skyrocket and other goods and services costs are forecasted to continue doing so as well, saving money is becoming very important. There are only 2 ways to grow your wealth - Increase your income (by earning more and saving more) or decrease your spending habits. Having money in a savings account for emergencies is a good idea and it should be easy to get to, but not too easy.

If you are looking to save money or make your money work for you, an old-fashioned savings account isn't necessarily the best way to go. First, you have to look at what you are paying out in interest rates. For example, if you have a student loan with a 5% interest rate and a savings account making 3% interest rate, your savings are costing you approximately 2%. You would be better off paying off that student loan 1st with your savings account, before putting money back in.

Some advice on saving your hard-earned money can be done in a variety of down-to-earth ways. Credit cards can be a great money saving vehicle, as long as you pay them off on time. Shop around for the best interest rates. You can save money on your gas by keeping track of your mileage and driving habits for one week before you start. Ideas such as tire pressure, driving 5 mph less in speed, will save you money on every trip you make. The following week, start practicing these tips and keep track of the mileage for another seven days to see what a difference it could make. You might find yourself saving $5-$10 a week which works out to $260-$520 annually.

Eating out is one area where many people quickly spend a lot of money without realizing it too. If you eat out twice a week, dropping just one of those could save you $1000 a year. Saving is as simple as this formula - earnings minus spending equals savings. Until your spending becomes less than your earnings, you can save. Once you find enough ways to that, the skys the limit but it takes discipline.

Technorati Tags: Saving Money, Lower Debt, Increase Earnings