THE 2nd STEP TO SAVING

The 2nd Step to Savings is Setting the Goal.
(note: Please read step one first)

You need to set specific targets and goals for saving money, or you will NOT make any significant progress.

Step 1: List all the areas where you spend money. (See Getting Started)

Step 2: Write down next to each how much you spend annually (or guestimate how much).

Step 3: For each entry write down as many things you can think of that would allow you to reduce that expense. You should include all members of your family on this discussion, even the kids. (Don’t get caught up if you really will do it at this point, just write). You can take an hour and do this all at once, or take one area a day.

Step 4: Sort each list of thoughts into “do able” and “possible.”

Step 5: Take one “do able” each week and do it! Or delegate it to your partner or spouse to do. Start with biggest financial savings opportunity, or start with easiest. The key is to start.

Step 6: Once you have done the “do able” then move to “possible.” Studying what you need to make each of these “do able.” If a purchase of something else or time will make it “do able” then take that action. For example, to lower food cost we need to buy a freezer. We had limited space but found a small size freezer on sale at Sears. The $125 investment paid back in food cost savings in 4 months. To save $1,200 in dry cleaning we moved 5 minutes of each day toward ironing vs. something else.