Saving Tips for Those Without Credit

Times are hard. All over the world, national economies are in trouble and money is short for governments, businesses and individuals alike. More than ever, it is important to have a safety net. Many people live paycheck to paycheck, spending all they make, leaving them vulnerable to many disasters. A sudden illness or injury, legal troubles, unemployment or a breakdown in a vehicle or major household appliance can turn life into a downward spiraling nightmare from which there may be no escape.

For those with poor or no credit, the problem can be even worse. The local payday loan lender may seem eager to help, but the high interest rates they charge mean their customers will end up with even less money than before. Some people might be able to get a personal loan from a friend or relative, but the hidden cost in the risk to their relationship with that person is rarely worth it. Going to a money lender offers only temporary solutions, making the permanent problem worse.

The first thing to do is to keep track of spending. Many banks make this easy by offering text or email alerts whenever a debit or credit transaction occurs. This is a quick and easy way to create a trail of documentation. Identifying the major expenses makes it easier to target them for reduction.

A budget can be an excellent tool for controlling expenses. Knowing how much money is needed for regular recurring expenses will enable a person to avoid spending that money for other things, averting the panic of a sudden bill. Deciding in advance how much money is available for things like groceries and entertainment allows the remainder to be set aside for a rainy day.

Some things seem like a good idea at first, but may not be worth the cost over the long term.

Through the magic of automatic renewals, magazine and website subscriptions can continue to drain money from the budget long after the initial interest has faded. Cancelling unwanted memberships can free up a lot of money that can be put to better uses.

Entertainment is a major expense item for many people. Going out to a club or to dinner and a movie can be a welcome relief from the tedium of everyday life, but an evening at home with friends can be just as much fun with less expense and hassle. A rented DVD with some microwave popcorn provides entertainment for the whole family at a much lower cost than going to a theater.

Most of all, it is important to have realistic expectations. Everyone wants to enjoy the good life, but it is better to have just enough with the confidence and security that comes from a healthy bank balance than to have all the little things while being plagued by doubts and fear of what will happen when unexpected expenses occur.

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Source: http://money.ezinemark.com/saving-tips-for-those-without-credit-7d3818f80555.html

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