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Imagine you or a loved one needed an operation that cost $10,000, insurance didn’t cover the cost, you could not borrow the money from anyone, and had only one year to get the money together. Under these circumstances nearly anyone could manage to save a good portion of that amount no matter what their income. It would be easier for those with a higher income to find a way to save that amount than those earning much less, but the reason most would be able to save their loved with the cash required for the operation would be motivation.

All of a sudden, faced with this scenario, a person would have a reason to forgo all but the essential expenses and would eliminate some of those as well. It all comes down to choice and values. Experts agree that individuals have made a choice about how much money they need to put away in savings versus how much they should be allowed to spend. That choice has little to do with income but rather the choice to save less and spend more over their lifetimes.

If you really feel the need to save money there are both simple and radical ways to cut expenses.

Most people don’t realize how much stuff they have just sitting around the house collecting dust. Even worse, is paying to store items while they deteriorate to the point where they have no value at all. Hold a garage sale. Raise cash and dispose of unwanted, non-essential items all at the same time. If you don’t want to hold a garage sale then donating the goods to a charity will give you a tax deduction and still rid you of excess materials.
Quit smoking. Each newscasts reports yet another tax on cigarettes that has raised the average price to nearly $5 per pack. At only one pack a day that still adds up to about $1,800 a year. On top of that if you quit smoking you will save on health insurance and other medical expenses, not to mention possibly extending your life.
Park or sell your car. If you live in a large metropolitan area chances are good that you have access to great public transportation at bargain rates. For those occasions when you need a car the money you have saved by not owning a vehicle can go towards renting a vehicle for a day or two. By forgoing the expense of gas, maintenance, insurance, registration, and licensing, a minimum annual saving of at least $1,200 a year can be realized. Add to that the amount of the car payment itself and you can see what a bundle you spend on a car.
How many clothes do you really need? On average, a consumer spends $1,700 a year on clothing. Shopping at a thrift store or consignment boutique can save half of that amount. Better yet, take an inventory of your clothing and determine if you really need another pair of black slacks or the season’s newest dress.
Entertain yourself at home. A big budget buster is entertainment. At an annual average of nearly $1,800 a trip to the zoo, or game arcade can add up. All of those meals eaten out constitute an astounding average of $2,200 per person. To cut costs, try making food at home to eat at the public park or beach. Go to the library, free art exhibits and festivals. Entertainment can also include the cost of cable television and pay per view viewings.
Moving is expensive, so instead of contemplating a move to the other side of the tracks to save money on rent, consider renting out a room of the place you currently live. With the national yearly average in metropolitan areas running to $13,000 per person for rental housing, renting a room for $400 per month is a bargain. Having someone else using utilities increases costs by about $20 a month that is more than covered by the increase in revenue from renting the room.
Get rid of those credit cards. Once you are able to build an emergency savings account those cards are not necessary. Instead of spending tomorrow’s money today, you can save on interest, yearly membership fees and the money spent on impulse buys. By charging items you are keeping yourself a prisoner of debt that will have long-term repercussions.

Now, how easily do you think you would be able to save up the $10,000 for that operation? It isn’t as bad as it seems at first. There are even more ways to save money, but these are just a few ideas to get you going. On top of not letting go of the money, if you put it in the bank at a conservative rate of return the compound interest will increase your nest egg nicely and quickly add up to more than you thought.

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Debt Consolidation - Loans & Credit Card Bill - Debt Consolidation

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