Ten Steps to a Savings Account
The wise old suggestions we should save 10 percent and give 10 percent of our income are admirable goals, but nearly impossible for many single parents. Single mothers are the least likely group to save or tithe because a large percentage earn below the poverty level. With rising costs of housing, day care, and food and clothing essentials, a savings plan is only a dream for many of these families.
There are ways, however, to rise above these statistics and develop a comfortable savings plan. Before we can begin to think about savings, extra money must be found. Obviously, you can’t go out and plant a money tree in the back yard. You may not have the time or ability to earn more money on the job or in your spare time. The only solution may be to cut down on expenses in order to find that extra dollar of savings. Start with these ten steps and you’ll be on your way to achieving your goals.
1) Teamwork — Get your kids together and let them know what you are doing. Cut out a picture of the goal: college, a car, a home, church giving, etc. Put the picture on the refrigerator to remind everyone to be more money-conscious. Then make a list of the ways you are going to cut spending. Keep a journal and make an entry every time you are successful. Don’t worry about doing anything with this extra savings for at least 60 days so you can concentrate on developing new habits.
2) Groceries — Spend 1-2 hours per week in planning. Do it first thing Saturday morning after breakfast, or if you’re a night owl like I am, do it after the kids go to bed and you have time to concentrate. Look through your grocery store’s sale paper for the week and plan your menus accordingly. Plan seven days worth of menus — everything from the beverage to the salad. Only include menu plan items on your grocery list. Use coupons for only those items you plan on buying. Stay away from brand name products. Nine times out of 10, they’re no better than the store or generic brand. Plan to save $20-$40 per week by being grocery-smart.
3) Cleaning products — Avoid buying fancy ones, which really drive up the price of your total grocery bill. A box of baking soda (check the box for handy ways to clean with it), a canister of cleanser, an all-purpose window cleaner, and a bottle of bleach are all you really need for basic housecleaning chores. Soda is a good general cleaner, scrubbing powder takes care of tougher jobs like the toilet bowl and shower, and window cleaner is useful to shine almost any surface. One part bleach to nine parts water makes the most effective disinfectant around. Contrary to commercial sales pitches, you really don’t need a different type cleaner for every room in your house.
4) Cell phone bill — Analyze your statements. Make sure you don’t have anything on it you don’t need. Cell phone carriers are very competitive, so take advantage of the deals they offer.
5) Gasoline — Find someone at work or in your neighborhood who is willing to car pool. You could save $5-$10 per week in automobile expenses by doing this. Take public transportation if it is convenient and will save you money.
6) Television — If you have cable, consider canceling it. It’s expensive and you and your children probably could get all the television screen time you need by subscribing to a streaming service like Netflix or Hulu, using Roku, Apple TV, etc.
7) Postage — Pay bills online whenever possible. At 50-cents per stamp, you could save $5 or $6 a month bypassing the U.S. Postal Service and you won’t have to purchase as many checks.
8) Checking account charges — Find a bank that offers free checking. This could save you $15-25 per month in service and check charges.
9) Insurance costs — Find an insurance expert you trust and ask him/her to help you analyze your car, home and life insurance. It’s possible you are overpaying for unnecessary coverage.
10) Subscriptions - Don’t renew magazine subscriptions. Most magazines can be found in the library. If you can’t find time to go to the library, you probably don’t have time to read the magazines you are receiving. Stop memberships to book clubs, music clubs, or computer services you don’t need. There are also many magazines and books that can be read for free online.
11) Preventative maintenance — Visit the dentist regularly, change the oil in your car every 3,000 miles, and tuck away credit cards in an inconvenient place. Prevention is always the best medicine for an ailing budget.
Putting The Money To Work
After a 60-day period, take a few minutes to look at the savings you have realized by cutting back. Don’t be surprised if it adds up to $100 or more. Warning: You probably won’t find an extra $100 bill in your wallet at this point, but you have now proved to yourself you can come up with extra money to save. The next and most important step is to devise a way to save the extra money you’ve “earned.”
• Save half of the money in an easily accessible account (credit union, bank savings account, etc.). Have the money deducted directly from your paycheck or checking account.
• Save the other half in a mutual fund or other long-term investment account. Ask a friend to recommend someone who is knowledgeable. This money should only be used for long-terms goals.
Now sit back and relax. Continue to find more ways to save money. Make it fun and savor the simple pleasures life has to offer. You know the oldest and wisest saying of all is “the best things in life are free.”
Diane C. Dierks is a Marriage and Family Therapist in Atlanta. She is author of “Solo Parenting: Raising Strong & Happy Families” (Fairview Press 1997) and “The Co-Parent Tool Box” (Aha! Publishing 2014). Visit www.dianedierks.com for more info.