Get financial freedom by saving money!

Everybody knows that money saving is an essential tool which can save you from debts and future loans. Saving money can help you get financial freedom and to get your goals you need to grow this habit from the very start or from today.

The key to building wealth is through saving and investing.
Yet, in 2005 the U.S. Commerce Department's Bureau of Economic Analysis revealed that Americans had a negative savings rate for the first time since the Great Depression. The savings deficit grew even bigger through the third quarter of 2006.
MSN money cetral provides 6 worthless excuses for not saving money, which are:

No. 1: I don't make enough
No. 2: I'll get around to it later
No. 3: I deserve a little luxury in my life
No. 4: Someone else will take care of it
No. 5: I'm saving through my 401(k)
No. 6: This item or service will pay for itself

To read in details: 6 (worthless) excuses for not saving money

Only way to save money for a safe and debt free future is to stop making exuces and get ready for making our mind to save money.

Some statistics on saving:

• The Commerce Department reports that Americans are saving at the lowest rate since the Great Depression.

• Personal savings stood at a national level of negative $6.2 million in January.

• About 40% of Americans say they are saving nothing for retirement. One reason: Over the past year, inflation rose 4.3% while salaries rose only 3.4%.

• One in four Americans told the Employee Benefit Research Institute that they have no savings at all.

Savings Strategies:

* Put away before you pay
Make a “mandatory” monthly payment into a savings or investment account. Treat it like any other bill you must pay. Set a figure you can afford and consider it an obligation to you and your family. “If you can, have your employer directly deposit $200 to $300 a month from your paycheck into a brokerage account or mutual fund,” says Aaron Patzer, CEO of Mint.com, an online personal savings and budgeting service. “If $200 a month in a Standard & Poor’s measured fund performs as it has over the past 20 years, you’ll have around $170,000 in savings in two decades.”

* Invest in a piggy bank
“Spend only paper currency,” advises Ric Edelman, who hosts a personal-finance show on ABC Radio. “By saving all the change you receive every day, you’ll probably accumulate $20 to $50 each month, without even trying.”

* Erase credit-card debt
Many families spend more than $1000 a year on credit-card interest. You can avoid that pain by wiping out your credit-card debt with every payment. “The average American carries $8500 in credit-card debt,” says Patzer. “At a minimum payment of $100 a month, it’ll take seven years—and $4257 in finance charges—before you’re in the clear. At those rates, it’s not worth it to let credit-card debt pile up.”

* If you can’t pay it off...
“Make the minimum payment only on the cards with the lowest interest rates,” says Edelman. “Then take any leftover money and make the largest possible monthly payment for the one card that charges you the highest interest. This is the fastest way to get rid of your more-expensive debt.” You also can consider transferring your balance to a lower-interest card. “Many credit cards offer 4.99% on balance transfers,” says Patzer. “Shop around for the best deal.”

* Avoid impulse buys
Eliminate purchases that might cause financial duress. If you want to buy something extravagant that will stretch your budget, first take seven days to think it over. “Or better yet,” Edelman says, “don’t carry your credit cards at all. This eliminates unnecessary impulse buys. You can always come back next week if you really want the item.”

* Start a “house money” fund
Take any tax refund, overtime pay, gift money, bonus or rebate money you receive and immediately commit it to a high-yield savings account or an IRA that you won’t or can’t touch. “Avoid the temptation to spend these dollars,” says Patzer. “This is ‘found money’ that can work for you. You never had it in your hands, so you won’t miss it when you invest it.”

(By Mike Hammer, Published: May 11, 2008)
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