Are you
part of those who find it difficult to save or you are looking for ways to
save. While! Saving money is not always easy. Especially for those who can't
afford to save a lot. However, having the habit of saving can be immensely
helpful in the future.
What
you need to know before you can save money
Well it is
important to have an overall goal to maintain your motivation, it is also
important to start with small, take manageable steps that you can commit to accomplishing
this goal.
When it comes
to saving money, many people have their own philosophies and reservations for
this ancient practice. Some of these ways of saving money turn out not to be
right or do not fit our needs. These lies about savings preventing us from doing
our best to save.
You
need money to save money.
For your information, you do not need to have plenty money to start saving.
The truth
is that the amount of income you earn does not matter. The more money you make,
the more your monthly expenses will increase. So if you put it at the back of your
mind that what you make is not enough to do savings, you are doing yourself a
great disservice. Change from that mentality if what you have is a penny save
it.
. You can buy because, after all, you
deserve it.
If you
have been feeling very tired, "I deserve a gift." If the boss is too
demanding, "I deserve a new outfit." The question is, will the
immediate pleasure of buying really solve your problems or create one more? It
is an illusion to believe that life's challenges can be solved with this kind
of compensation.
This
behavior is also a result of the stimuli we receive to overconsume when we can
move on to a new way of living and thinking about our choices. Making smart
decisions, such as growing a garden, reading, or walking in the park can bring
more personal satisfaction than spending the money you worked so hard to earn
on products, you don't need.
I
spend my money now, as I may not be alive tomorrow.
Imaging living
with this mentality. So what if tomorrow comes to meet you and in that tomorrow
you are 60 or 70. Life is full of uncertainties but it is better to be on the
safer said. So that no matter what happens you are protected.
Savings
is a risky investments.
Some live
with this idea that if they save in the bank, the bank might run away with their
investment or the bank will steal it. Yes, some private banks can be a place of
risk but for you to be on the safer side save with the national Bank. Yes no
matter what happens your money is save.
Have
a clear goal why you want to save.
Before you
start saving money, ask yourself why you want to save money. It’s easy to give
up when you do not have a clear goal in mind, but having a purpose makes everything
easier. Maybe you want to invest for your kids, maybe you save for a house, or
maybe it's a fund reserve for bad days. Whatever the reason, it is important to
know clearly why you are saving.
Be
Prepared for this task.
Saving
money is not easy, especially if you have no money. If so, everyone would have
savings. When you start saving money, you have to show commitment, dedication, and mental strength.
Are you
ready to give up some luxurious lifestyles? Or, what if your friends go out to
dinner with you, do you have the mental strength to stick to a budget? Some
people are strong enough to do this.
However,
some people will find it a great challenge to save money. If you are this person,
please ask for support.
Here's
how to start saving money
Get a palace to keep your money
You want
to start savings, it important you get a
save and reliable palace to keep your money. Depending on your choice, you can
have your money save at home with a good lock to keep your money. But keeping your
money at have comes with a lot of disadvantages.
Therefore it very prudent to open a savings account with a bank near you. It
much safer than home.
Take the action Today
A number
of people think about savings but only a handful take the needed steps to
achieve their goal.
When it
comes to saving money, the biggest mistake people make is not to start earlier.
For some
it just because they feel their income is small and their expenditure is very high.
Just start with the little you have, even if it a penny. This is the most
important step to get started. As time goes by saving becomes easier and more
comfortable.
Record your expenses
Writing
down your daily expenses is the best way to identify how you are spending your
money. The process is simple: write down the expense and beside the amount. In
order to function, it is important not to forget to register even the small
expenses such as chewing gum, small snacks, magazines, bus tickets etc. As much
as the amount seems too small to impact your budget, when added up, these small
expenses can make a difference at the end of the month. Jotting down your daily
spend also helps you identify where you are spending your money, see which
budget categories are the biggest spenders, and where you can save.
Reduce unnecessary costs
Do your really
want to save, you need to reduce some of your daily expenses. The more you want
to have to save, the more extreme your costs must be reduced.
First, you
should reduce your monthly expenses without which you can still live
comfortably.
Here are a
few suggestions:
Netflix -
and other monthly on-demand services. You can live without TV programs for a
few months.
Fast Food
- is a convenience you can easily do without by cooking at home
Gym - You
have a gym membership but you hardly do use the service. it will do you a lot
of good if you cut it.
Subscription
Services - Newspapers, magazines and smartphone apps can be unsubscribed.
Food -
reduce your monthly expenses and switch to cheaper brand alternatives.
Create a budget
Spending
money without a plan must be the mother of all bad habits. It's like you're
blindfolded - you do not know where you are and can not see where you're going,
so you do not know when to stop. But if you want to be in control of your money
and make smart decisions, budgeting is essential.Sit down and make a list of
your fixed monthly expenses, such as rent and payment of the car. Next,
estimate your variable expenses such as utilities, food and gas. For occasional
expenses (clothing, appliance repairs, car maintenance, entertainment) some
time should be allowed. Count them together and subtract from your monthly income.
If you find that your expenses are higher than your income, do not worry. Just
make further adjustments until you find the right balance and stick with it.
Change Habits
They are
number of things that we do which will not allow as to save
Here are
few suggestions
Playing
the lottery. You having being playing the lottery for some years now and you are
yet to win. Just do the math and you will see how much you could have saved.
Smoking.
While am not trying to be a moralist but somethings a just a waste. Just ask
yourself for all these years of smoking
what significant benefit has it brought to me and do the math to check the
amount of money you have smoked.
Using drugs.
Drug abuse is one way we miss-use money.
If you can get off this habit you will have enough to save.
Subscribing
to porn services. Pornography is a headache for many people. It not only health-hazardous
but can also be a waste of money to pay to watch porn for 5 minutes
gratification.
Find
coupons that save you money.
When used
correctly, coupons can lead to significant savings on your purchases!
Search for
coupons in newspapers, magazines and websites. Also check the packaging of the
products you have already purchased. Some brands often print coupons on their
products.
Make sure that you do not fall for the
marketing tricks of the coupons. Use coupons only for items you intend to buy.
If you buy
a product just because you have a coupon, you will not be saving money.
Plan, plan, plan
Planning
goes hand in hand with personal financial control. For peace of mind when
managing your finances, start by planning your spending goals for next month.
Define how much you can spend on each category of your budget, prioritizing
essential fixed expenses such as rent, condominium, and college tuition. Then
move on to variable but essential expenses such as electricity, gas, and grocery
bills. Once you have defined the essential expenses, move on to those related
to lifestyle, such as caring for people, leisure and restaurants, always taking
care to stay on target. Even financial dreams must be planned. If you want to
take a trip, for example, set the time you would like to go.
Knowing
how to control personal finances is a matter of habit. The more you practice,
the simpler it will be, and the better your finances will always remain
balanced.
Do extra
Take a
small job If you're trying to reach a goal that seems to take longer than you'd
like, why not take a backup job? Oh ! Only for a time. Just a temporary job to
help you get out of a bad economic situation. If you are in debt, an extra job
is the best way to repay your debts quickly.
Talking
about saving and having more control over your spending can be crucial to saving
money. However, often the problem is not having enough income to achieve the
stability needed to do so. So if you have any talent or knowledge about
specific areas, why not use them to earn extra money?
If you are
good at writing, surely someone will be interested in taking some classes. If
you know another language well, you can use your knowledge to teach people who
do not have the time or ability to attend a language school. You can sell your
knowledge over the internet!
The time
maybe short, but with a few hours a month it is possible to generate extra
income. This can go directly to savings and thus get closer to realizing your
dreams.
Auto save
Setting up
automatic savings is the easiest and most effective way to save, and it puts
extra money out of sight and mind. Define how much you will save each month.
Place a "standing order" on your salary account so that anytime salary drops in the account
money will be transferred into your savings account. This option leaves you
little room for excuses, as the money is saved as soon as you get your wages
every month.
Use the 30-day rule
Before
making a big expense, use the 30-day rule. What is that? It's about waiting 30
days before making a purchase. If after 30 days you still want the item in
question, then you can consider buying it. But often you will find that you do not
really want or need it anymore. This rule allows you to avoid compulsive
purchases that are mostly due to excitement or your emotions about a product.
Start selling things that you no longer need
and save the profit.
You want to save, and multiply your savings but you have no money to invest? Well, if you recognize yourself in this sentence, it's time to start selling some of those things that you have lying around at home but are not using anymore.
Look around for items that you own, but that you can do without. This could be an old laptop or smartphone. Maybe you also own some books that you have already read. What about old clothes, shoes and jewelry?
After a
quick, short search you will be amazed what you will find. Sell these items
online, and you will immediately get some money that you can put into your
savings or reinvest to make more money.
It is also
possible to use these tips as a step by step to financially educate yourself
and thus be able to save money. Among other recommendations, it is interesting
to invest the money saved towards a goal.
