Savings Can Happen, Little By Little

Money is so easy to spend; it slips through fingers like water. Even with the best intentions to put a little money aside every month, we often find there’s nothing left when the month comes to a close.

But saving doesn’t have to be hit-or-miss. There are simple tricks that can help you pay yourself first. A great place to start is with your annual income tax refund. You can use some or all of it to start on the road to a lifetime of saving.

“A lot of people, espe- cially low-income people, get a fairly sizable tax refund,” said Brenda Procter, state consumer and family economics specialist for University of Missouri Extension.

You can set aside some of your refund to build an emergency fund. “Research shows that a $500 emergency fund is enough to keep most people out of trouble if something goes wrong,” Procter said.

Another tip: When you pay off a loan, continue to make that payment, but pay yourself rather than the creditor.

“When you do little tricks like that, you’ll be amazed at how much you can put aside without really feeling it or without it having an effect on your family,” Procter said.

There are so many ways in day-to-day life in which nickels, dimes and dollars slip away unnoticed. Sometimes dropping a habit can keep money from leaking out of your budget. Eating out is probably one of the biggest thieves of loose change and small bills.

“Let’s say one person in the family is spending $5 a day eating out. If you didn’t do that for a year, you’d have almost $2,000 by the end of the year,” Procter said.