I recently read an article that gave sixteen ways for regular people, people just like you and me, to build our savings account balances. However, the information given, sounding good on the surface, in reality could be bad advice. Below are a few of the ideas given and my editorial comments.
Save by Using Credit
My husband and I do not carry any significant amounts of cash - have approximately $20 to $40 maximum in each wallet. All purchases - food, gasoline and nominal retail purchases - are on the card. All credit purchases are paid up completely every billing. Savings are twofold: 30-day float and no credit card interest ever for the past 30 years or more. Our motto is, if we pay any interest charges, they must be tax-deductible!
My comment: It is a well known fact that we Americans spend more when we use credit cards. While I agree that paying them off at the end of the month is the only policy to have, it is still easy to spend more than your budget will allow.
Save With Coupons
Use coupons at the grocery store and put that money in a piggy bank. It’s amazing how much it adds up. Years ago the stores gave you cash back for coupons you used, but now it’s just deducted from the balance you owe at the store and your receipt shows how much you saved. But you haven’t really saved if you aren’t actively saving that money - you are just spending less. Start saving by taking the amount of cash out of your wallet and putting it away.
My comment: Again this is a good idea, but coupons tend to have us buy products that are not on our shopping list. Items that manufactures or grocery stores want us to buy. My question to you, “Who do you want to control your money, you or the food manufacturers and sellers?”
Don’t Touch the Money
I have a certain amount allotted to a bank account each payday that I do not use to pay bills, nor do I withdraw from that account. I never miss the money because it is allotted before my pay is deposited.
My comment: Becoming debt free, wealthy and/or successful is most often about knowledge and taking action. Saving money this way is a fabulous idea, but many times if you don’t know how much is in the savings account (earning VERY little interest) how are you going to find financial freedom? How are you going to invest it, and where, and how much?
