Make Extra and Save It

Document created by anng on May 28, 2016Last modified by amara.mastronardi@socialedgeconsulting.com on Dec 5, 2016
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When I worked at a bank I was given some very good advice by a supervisor.  Put money away where you will not have easy access to it. Every week give as much as you can to a trusted friend or relative who will put it in a bank account.  The account should be in your name, but should not be accessible through online banking.  Most banks still have what is know as a passbook savings account. With this type of account you need to actually go to the bank with the book in order to withdraw the funds.  By having the other person keep the book for you it will take extra time and effort in order to take the money out. It is also a good idea to share, with them, what you are saving for. Whether it's a new car, a deposit on an apartment, or a vacation, being accountable to someone will mean you are less likely to spend the money on spur of the moment items.

 

Now that you have a secure way to save it's time to look for extra money

 

Start by using only cash instead of plastic.  One credit card is good to have in case of a major emergency, but do not use it for daily purchases.  Ten dollars here and ten dollars there add up to hundreds of dollars by the end of the billing cycle and thousands of dollars over the course of years if you carry a balance. Even debit cards can make you lose track of your spending very quickly.  The best way to spend is set a weekly budge and take only that amount from your paycheck or from the ATM.  At the end of each day empty your pockets or purse. Keep the bills for the next day and throw all the loose change in to a can. Tape the cover on and cut a slit in the top so it is less tempting to cash out before it's full.  Once it is full, bring it to the bank where you passbook savings account is and deposit the whole can of change. It many only five or six dollars, but it's five or sic more in the bank than you had the day before.

 

Another way to have extra money is to take on more hours at work during busy times. Take everything extra earned and put it into the savings account.  Keep to your weekly budget instead of spending the extra.

 

A third way to make some extra is to get out there and help others.  Do you know an elderly couple who needs their grass cut or their sidewalk shoveled? How about someone who is recovering from an illness or surgery and needs help with their pets? Don't expect to earn a fortune.  Accept what they can afford to pay you and bank it.  Word of mouth travels quickly.  Pretty soon you might have a steady stream of income with hours that can be worked around your class and/or other job schedule. A very important thought to keep in mind is don't be so full of yourself that you can't accept a couple of dollars for helping someone in need.  Even if they pay you with a free meal, it's money not spent from your budget.

 

In today's financial environment a penny won't buy you anything, but learning how to save many of them will teach you a valuable lesson in how to survive any economic challenges you might face in your future.

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