Have your spending habits become a problem? Are you living well beyond your means and unable to adjust to the new reality of this horrible economy? A number of Americans are in the same boat. However, a large number have decided to change their spending habits and concentrate on saving for the future. Perhaps you’re one of them. Perhaps you’ve decided that you can no longer afford to live on credit alone. Perhaps you’re burdened by debt and realize that you’re spending habits must change immediately. Maybe you were simply trying to buy loved ones everything you felt they deserved, or got accustomed to treating yourself far too often. Whatever the reason, deciding to break your spending habits isn’t easy. However, it’s the essential first step towards making prudent decisions about your future, saving for retirement and for that much needed emergency fund. Making the decision to break your spending habits is the first step. Now you must enact a plan that ends it for good and starts you on the road to saving money. Here are some steps to help you on your journey.

Isn’t buying on credit fun and easy? You see something you like, pull out the plastic and it’s yours! No fumbling for cash, no worrying about how or when it’ll be paid. You just take out your card and buy on impulse. Well, it’s fun until you finally get the credit card bill and notice that astronomical interest rate. Sure,
19% doesn’t sound like much, but when those charges pile up it then becomes apparent what the costs are of overspending. A number of Americans over the last 20 to 30 years have lived vicariously through their credit cards. However, like most Americans in your position you know it must end. Saving money is no longer the exception to the rule, but the only rule. You’ve likely decided to end your spending ways and concentrate on saving for the future. Perhaps you’ve decided that your retirement need some growth or just want to make sure you have money available for a rainy day. Whatever the incentive, it’s the right decision. Putting an end to the spending habits is the first step. Now you must move forward and start saving. So, where to begin?

If we have learned anything from the recent economic recession it is that our money is not safe. We can work hard and save even harder just to see it all wiped away in what feels like the blink of an eye. It is important that we learn from what we have recently gone through in this decline so we do not let the economy get the best of us again in the future.

In the past several years many banks failed, even well known names that were too big to fail have gone under. Depositors lost almost $245 million. These banks failed because they made careless investments with depositor’s money and exceeded the $100,000 limit of the Federal Deposit Insurance Corporation (FDIC).

Normally someone would not even think about withdrawing money from their 401(k). But, with today’s economy, money is tight. If there is an emergency situation where you need money right then, where do you turn? I’m not going to lie, accessing funds from your 401(k) for anything other than retirement is not an easy task. It’s even harder if you are still employed by the company that provides your 401(k). You still do, however, have two options. Option number one is loans.