University of Wisconsin - Extension

CHILTON, Wis.—Money; most people need to earn it, everyone seems to enjoy spending it, and it is also important to build wealth by saving it. Many people think saving is hard or it feels like they are depriving themselves. Often money can be saved by doing something differently rather than doing without.

Faden Fulleylove-Krause, University of Wisconsin-Extension Family Living Educator in Calumet County, recommends thinking of savings as "paying yourself."

Pay Yourself First is a wonderful way to start building wealth and it feels better than paying someone else first. "There are lots of individuals who want your money," says Fulleylove-Krause. "I tell folks to keep their money in their possession!"

Realize that building wealth takes time, and a little is a lot. If small amounts are saved on a regular basis, you will build wealth.

Are you wondering how to save a dollar when you feel like you don't have a dime to spare? When it comes to savings, small lifestyle changes can lead to big savings.

-- Save change in a jar, 25¢ a day = $91.25 a year

-- Buy generic or larger quantities, $5 every two weeks =$130 a year

-- Pay bills on time to avoid late charges, $10 a month= $120 a year

-- Substitute a glass of water for one can of soda/day, 75¢ a day = $273.75 a year

-- Bring your lunch to work two times a week, $6.00 a week= $312 a year

A savings account for emergencies is an excellent first savings goal. Grandpa's advice to set money aside for a rainy day is still sound financial advice. Even with interest rates at an all time low, savings is still important to decrease debt. For example, if a $1,000 emergency occurs, and there is no savings to cover it, some may put that expense on a credit card. If they plan to repay the loan at $92 per month, the total cost of that $1,000 loan at 18 percent interest is $1,104. That's assuming you stick to your payment plan -- if you extend the payments longer, it will cost even more. Taking that $1,000 expense from a savings account that earned interest is a financially sound method that will use less of your money.

You will be two times more likely to be a successful saver if you have a specific savings plan. An easy way is to pay yourself first each month (or week)! Grow your money into wealth that will work for you. To learn more about savings, visit the America Saves web site at http://www.americasaves.org. This site is available in English only, or contact your county UW-Extension office.