Even before you have your debt paid off, it
is important to begin saving money in a savings account for
financial emergencies. You never know when the car will break down—so
plan ahead now by putting some money aside. I recommend at least $800-$100
stored in a savings account or money market.
How do you begin to save cash? Here are some answers below:
First, plan an amount to save every week. Even if you are totally broke, you can probably save $5.00 or $10.00 a week. I personally have been able to put away $25 a week, just by cutting out fast food, snacks, and Starbucks coffee. What do you waste money on?
Start a change jar. Every day, empty all your
loose change into the jar, and do not touch it. If you or your children find
loose coins lying around the house, encourage them to put it in the change jar.
Next, open a savings account if you have not
already. This is important for two reasons:
1. If you store your money at home, it could always be lost or stolen. I will never forget the day my elderly neighbors came to my husband crying because someone had broken into their house and stolen $10,000. That money would still be safe in the bank.
2. You will earn interest on the amount of money that you save. It used to be that interest rates were very low, but many online banks are offering much higher percentage rates for savings accounts.
Be sure to save money in a bank account or money market that is FDIC insured—in other words, insured by the federal government. Like I said before, your money is safest in the bank.
Finally, continue to save, even if you have to
spend your “reserve” cash, or times get tight. If you need to, cut back to
$5.00 a week or $1.00 a day. This has to be a real priority for you, if you
want to enjoy debt free living. As a mom, you need to save for your retirement someday, or
to help with your child’s college education. Be knowledgeable and
educated about saving money.