Employees can save more money by earning more money and by spending less money. This article will discuss how employees can spend less money and build the financial nest egg that is so important to have in our uncertain economy. This nest egg should be able to support the unemployed person’s family for at least six months.
Employees must guard against impulse buying, especially when they are buying expensive items. To guard against impulse buying, employees should hesitate between one and thirty days before buying the desired item. The more expensive the item, the longer the period of hesitation should be.
Another way to approach buying an item is to calculate how many hours the buyer will have to work to buy the item. The question then becomes, “Is this item worth this many hours of my life spent in work?”
Still another way to approach buying an item with a credit card is to estimate whether or not it still would be possible to pay off the credit card at the end of the month. If the answer is “no,” the prepper should not buy the item.
Employees should enroll in 401 (k) programs at work. These programs usually have employer contributions that will go to waste if employees do not enroll. The 401 (k) is a special nest egg specifically for retirement, although an employee can borrow from it during an emergency.
College tuition can be a major expense. Some good jobs, however, do not require a college education. If the decision is made to go to college, however, living at home and attending a local community college for two years will save much money. Going the last two years to a college within commuting distance of home and paying instate tuition usually is less expensive than going to a college in another state. An employee also can continue working and attend the local college part time.
Employees also can save money during their vacations. Staying at home and visiting local attractions is one option. If the employee’s family vacations are far from home, perhaps they can vacation more cheaply if they stay with friends or relatives. Another option is to stay in campgrounds. Still another option is to take the family vacation during the off-season when the motel rates are cheaper.
Employees, especially those who are out of work, should tell their friends that they are on a budget and that they cannot afford luxuries such as eating lunches and dinners in restaurants. One way around this lunch and dinner problem is to rotate the meals at the homes of all of the friends. If some of their friends cannot seem to understand this need to tighten budgets, perhaps they are not worth associating with as much as before.
Employees, however, should not economize too much on their grocery bill. Healthy food can cost more than junk food. But, as Michael Pollan said, “Better to pay the grocer than the doctor.”
How do you save money? Please comment below.