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12/28/07

Simple Ways to Save Money

Many people are on a tight budget. However, in order to break out of the norm and achieve success, you have to take a chance, a true entrepreneurial risk. Ninety-nine percent of the time, you have to make a monetary investment in order to change your situation. Therefore, the question becomes, “how can I make a monetary investment if I do not have the money to do so?”

Interestingly enough, the easiest way to make more money is not by earning a larger salary (because we all know that if getting a bigger paycheck was so easy, everybody would do it) but by cutting costs. This leads us to the topic of the article, “simple ways to save money.”

Step one: cut your costs. Some people have a very limited income, but have a top of the line cellular phone, the best cable package, and eat at a restaurant several times a week (including breakfast, lunch, and dinner). Reevaluate your situation and cut out what you do not need. Do not buy the $400 cell phone when a $100 cell phone will be sufficient. Do not get the unlimited minutes plan for $150 per month, when a smaller plan for $50 per month is all you need. Get rid of all the movie channels that cost $2 extra per channel per month on you cable bill. Bring lunch to work, and do not run to your local coffee house every morning to buy a $3 cup of coffee.

Taken individually, all of these costs seem insignificant. However, if taken together, you could be saving well over $100 per month on your expenses. This money could then be used for investment purposes, thus creating an income stream. Therefore, not only have you saved money, but the money that you saved is actually making you additional money.

Another good way to save money is to automate the process. Many banks will automatically take a portion of your paycheck and put it into a savings account at no charge (you will have to fill out some paperwork, but everything is usually very easy and takes almost no time to complete). By doing this, you are guaranteeing that you will save some money every month and makes the savings process easy for you. Keep in mind, every little bit can help you. Therefore, something as small as $50 per month is a good starting point if that is all you can afford. If you can do more, by all means, save more!

Just remember, you want your money to work hard for you. Therefore, put your money into a banking institution that pays you a good interest rate. There are many Internet sites (such as www.bankrate.com) that will give you the interest rates of the banks in your area as well as national banks. This way, you can choose the best option for you.

Start saving and you will soon see a difference. Once you have a little capital, keep your eyes open for investment opportunities that can help you achieve success.


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