You Can Build Wealth by Saving

You don't have to be rich to start saving. Many Americans are paying off debt and saving money in the process. You can do this as well. Building wealth begins, when you make a plan to reach a goal. Saving basically comes down to planning, discipline and patience. This article looks at handling your finances wisely.

Reduce Your Debt
1. Stop borrowing and charging. Look for other alternatives or simply go without.
2. Stop spending more than you earn. This includes windfalls that come your way.
3. Budget strictly and pay a little more to each account. Even if it is on $1 more.
4. Begin with the highest interest rate first. The account with the highest rate needs to be reduced first.
5. Apply the snow ball affect to your bills. When one is paid off, apply that amount to your next bill.
6. Avoid temptation to invest in more debt.

Participate in Work Related Retirement Programs
1. If you offered a 401k, take advantage of this program. If you can place the maximum in it, do so.
2. Outside of work, get involved in an automatic transfer from your check to a savings account. You can do this at your local credit union or bank.

Other Saving Ideas
1. Avoid fees. Fees for overdrafts, over extending on cards and penalties can kill a budget. Most of these happen, when you don't pay attention to your statements and budget.
2. Eat out less and carry your lunch.
3. Car pool
4. Plan your at home meals carefully.
5. Eliminate the newspaper. If you have a computer, you will never need one.
6. If you have land line phones and cellphones, get rid of one.
7. Save aluminum cans and cash them in. they are going for 60 cents a pound at this writing.
8. Forget the cappuccinos.
9. Wash your own car at home.
10. Collect your loose change each month and put it in your savings account.
11. Stay home instead of clothes shopping.
12. Have someone in your family cut your hair.
13. Groom your own pet.

There are countless ideas for savings. Make out your own list. Ask other family members for ideas.

Talk to Others
Staying discipline requires support from others. Keep logs to compare with others. Do this on a weekly basis like on a Thursday. Doing this on this day preps you for the weekend.

Should You Use Your Savings to Reduce Debt? This is a tough call. You never want to deplete your savings. It is money that is yours. You do not want to borrow and add more debt. However, if you need to start the snow ball effect for debt reduction, you might want to use 50% of your savings. Every situation is different. Ask yourself this question. "Is it to my financial advantage to use my savings?" If not, do not borrow from your savings.

source; AmericaSaves.Org