Of course things were much cheaper way back when and yes, inflation has a big affect on the value of a dollar and even yes, a dollar used to go a lot further. However, many people fail to understand that the value of that dollar is completely relative to the time in which they live. Of course that dollar bought you a lot more back then, but you also earned much less than you do now. For instance if it cost you a dollar in 1960 it will probably cost you about six dollars today but then again you are earning more than that $125 a week paycheck.
However, there are some basic money saving tips that your ancestors used that helped them save for a comfortable retirement and ensure that their money went a long way.
First you need to do a reality check, before you make any large purchase make sure it is your head and not your emotions that is making the decision. People do tend to make this kind of purchase based on wants instead of basing it on needs, so be sure to analyze your situation before making a large purchase.
Secondly, you always want to shop around and compare before you buy. The Internet has made this process much easier and with only a minimal amount of effort you can compare multiple products or services from different sources which may save you from a costly mistake or even an unwanted nasty surprise.
It is not too late to start saving money and there are some small things that you can do that really will add up. For example, try not to spend the entire paycheck, start by saving just a small amount from each one. Around 15% is recommended but don’t panic if you can not do that every time as the most important aspect is to save something consistently.
Also, reduce those ATM fees, either by estimating what you will need in cash for the week and making one withdrawal rather than several during the week; or often times you can just use your ATM card as a debit card when making a purchase without any fees at all so check with your bank on its policy.
Finally, keep a very close eye on your money; keep track of where you are spending it and how much you are spending. People that keep track of their spending tend to have a better idea of how much has already been spent which helps to keep you from going over budget.
