I have a bachelor's in finance. I am a stay-at-home mom, but my husband likes to call me the CFO (chief financial officer) of our household.
Money Saving Tricks!
Who Can You Convince To Save Money?
Most people feel that their finances are a very private matter. Others think they are doing just fine.
Yet others are slowly sinking into debt. Who can you convince to save more money? Usually family and close friends are the best bet.
Also, if you work in the Finance field, clients will listen and may even follow your advice. Most people are set in their own financial routines and find it difficult or scary to look at their finances in depth.
It seems like too much work to them or an unimportant subject to look into later. Show them how to save money the easy way!
Are They Happy With Their Finances?
Do they feel financially secure in their future? If so, they may be OK, but there is always room for improvement.
By keeping their 401K deductions the same (percent of income) each year, they will actually be saving more each year (with raises) without doing anything.
To make more profit easily, have them raise their 401K contribution by 1% each year. The savings will snowball!
What are their plans for their future?
Retirement may be around the corner or a long ways down the road. A lot of younger people may not feel the need to save money for retirement since it seems like it is so far away.
They have more pressing monetary concerns now to deal with. With compounding interest, a little can add up to a lot over time. Remember, A mighty Oak was once a little nut that held its ground!
Show the person who you are trying to convince different ways they can save for retirement. Help them fill out the paperwork to sign up for a retirement account.
Show them how little they will need to put into their retirement savings each week and remind them that if it is taken out of their paycheck, it is not taxed, so their paycheck and tax return will benefit from a lower taxable income.
Last, but not least, help them automate the amount they put into their retirement fund through the bank or through their paycheck.
Save for a rainy day!
The Security Of A Rainy Day Fund
Ask them if they have concerns about saving money for a rainy day. What if their car breaks down or they lose their job? Do they have money saved up to help them if these things happen? What will they do if they don't have the money and a crisis occurs?
Go over the scenarios with them to 'scare' them into thinking about a rainy day fund.
A lot of people live in the now and don't think about saving for the future. Have them set up an automated deduction to an interest-bearing savings account for a rainy day fund.
It could even be as low as a few dollars a week. A little over time is a lot more than saving nothing.
A vacation home in Vail, Colorado
Do They Have Financial Goals?
Would they like to save money for their childrens college, buy a house, go on a vacation or remodel their home? Do they have a plan to save for these goals?
Talk to them about how nice it would be to make those dreams become a reality. By starting small and automating the savings, they can save enough to reach these goals.
Find pictures of their goals, whether it is a vacation or a dream home and send them to them regularly by mail or email. Ask how close they are to their goals regularly to hold them accountable.
Make a list of all of the costs, add them up and divide that number by the amount of months until they would like to reach their goal. For instance, they might want to go on a vacation that will cost $2400 in about 12 months. Divide $2400 by 12 and you will get the amount they need to save each month to reach their goals.
Make it easy for them to see how they can fit these small savings in to their lives to create their goal in the future.
Great Tips For Saving Money
- My 25 Favorite Money-Saving 'Life Hacks' - The Simple Dollar
My 11-year-old son loves “life hacks.” It’s become something of a hobby for him as he’s found lists of preteen-appropriate “life hacks” and has been using
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2012 Melanie Casey
Mary Hyatt from Florida on February 13, 2013:
Great article advising others how to save money. I try to instill in my children to save money to purchase something they want by putting aside some money in a separate envelope until they have enough to buy. I preach the pitfalls of credit. My daughter who is away at college is always hounded by credit card companies to get a card, and I tell her NO, don't be tempted!
Voted this UP and shared.