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    Trending Tips To Save Money

    By InvestMe | September 21, 2016

    Tips to save money

    Ways to save money

    When it comes to how to save money, the most difficult thing is to figure out where to start from. Once started, you can carry it very well. But the confusing part is to when and how to start to save money. We all know if you want to save money fast, you need to adopt some painful methods like cutting down on shopping, cutting down on movies or food or sacrificing some of the luxuries. Of course, this thing is not easy to do when you have created the habit of such kind of lifestyle. Thus you can start step by step or adopt some methods where it is less painful to save money. When you really intend to save money, you need to put a financial goal to achieve. This will give you motivation to save money. This goal can be anything like going for your next trip or even buying a new home or even buying some new piece of jewelry or it can also be buying a new car. Such goals can be achieved by firm determination of saving money. Thus here are some simple and easy tips to save money.

    The first and foremost tip to save money is to know how much you are spending. Select a time duration let’s say a week or even a month and track all your expenses for that particular time duration. While you are recording your expenses, you should consider every small amount of expenses and record it. This includes a chocolate purchased or a coffee or newspaper or even a snack. Each and every bits and pieces of your expenditure must be recorded. Once you get a track of all your expenses of the particular period of time, take a look at your data and organize it. You can organize your data according to the category like rent, gas, groceries, mortgage and so on. This will avail you with an exact idea as to how much you are spending and where. Also see the total amount as to what exactly you spend in whole month. This will show you the right path where to spend and where not to spend.

    Now that you have the exact data as to how and where you are spending in your whole month, you can plan to save money properly. Now the first thing you should do to save money is to make budget to plan your spending. In order to save money, you need to limit your spending and also keep some part of your money aside for emergency saving fund. Prepare a realistic budget keeping in mind your regular expenses. Follow the budget with loyalty so that you can save adequate amount of money. There are certain expenses which occur once in few months like car maintenance such expenses should not be included in monthly budget as it is an occasional expense and not a regular one.

    Considering your monthly earnings and expenses, make a savings category according to your budget.  Try to save money up to 10 to 15 % of your net income. If your expenses are such which don’t let you save money up to that extent then it might be the time to cut back on some of your useless expenses and reach to that level of savings. Hunt for the non-essential items on which you can spend less. Say for example entertainment and dining out can be such expenses where you can put cut on. Instead of spending money on such things you should save money and spend it on essentials like home or vehicle.

    Setting your goal to save money makes the whole process of saving money a bit easier. Start by coming to the conclusion as to how much time you will take to achieve each of your saving goals. There are certain short term goals to save money like

    After you are above achieving short term goals to save money, you can go for long term goals to save money which can take many years to accomplish.

    Different persons have different priorities when the question is about saving money. Thus it is totally your call as to which saving goal is more important to you. One of the essential parts of this goal is deciding how much time you can wait to save money to achieve your goal and how much you can spare from your income every month to reach to that goal. Once you decide this about all your goals, set them priority wise and set money aside from your monthly budget. Keep in mind that setting out priorities means making your choices. If your priority is saving for retirement, some of the other goals will get a pause. Thus make sure you are hitting your top priorities.

    Automatic transfer to savings account can make the process of saving more much easy and simple. By moving the money out from your checking account, you will be using less money monthly then you use to spend before transferring it to savings account. You are availed with many options for making your transfer. You need to decide how often you want this transfer of funds from one account to another.

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