HOW TO SAVE MONEY: 5 MONEY SAVING TIPS

Saving money is a big challenge for us. I remember my childhood days, my parent taught me how to save money. According to them, saving money means saving your life. So in this blog, I will show you my 10 tips on how to effectively save money for your future needs or maybe future investments.

Here are 5 things you can do to boost your chances of successfully saving money. Not only for your short-term goals, like a holiday, but long-term ones as well, like building up a home deposit.

1. MAKE A BUDGET

                                                                                         

Budget is very important thing in savings. With the help of proper budgeting, you can adjust for your needs and wants. You can balance your financial for the whole year if you know how to budget your money.

Make a list of all of your expenditures. Try to eliminate unnecessary spending from your budget list. It may help you increase your savings. Regular expenses such as rent, insurance, transportation and utilities should be your priority in your budget list.

After making a list, you will now deduct these expenses from your income. Always remember that the total income is the sum of your income in a full time job plus income from your part time job, businesses, pension or any source of income you have.

“If you’re spending more than you earn, ask yourself what you could cut out or cut back.”

2. FIND WAYS TO CUT YOUR SPENDING

If you notice that your expenses is too high compare to your income, it is the best time to cut expenses. First thing to do is to identify non essential expenses like entertainment and dining out. Look for ways to save from fixed monthly expenses telephone bill and electricity bill.

Here are some ideas for trimming everyday expenses:

1. Commit to eating out only once a month and trying places that fall into the “cheap eats” category.
2. Give yourself a “cooling off period”: When tempted by a nonessential purchase, wait a few days. You may be glad you passed—or ready to save up for it.
3. Cancel subscriptions don’t really need.

3. OPEN A SAVINGS ACCOUNT

Savings account can give you interest. The more savings you commit, the higher the interest you receive.

Savings accounts are somewhere you can put some or all of your extra money from your income – the amount left over after paying for personal necessities and tax. You can avoid the temptation to spend this money by setting up automatic deposit in your preferred bank account.

4. SET SAVINGS GOALS

To boost your interest in saving money, you need to set your own goals. Start by thinking of what you might want to save for—perhaps you’re getting married, planning a vacation or saving for retirement. Then figure out how much money you’ll need and how long it might take you to save it.

Here are some examples of short and long term goal:

Short-term (1-3 years)	Long-term (4+ years)
Vacation	Retirement
Downpayment for a car	Child’s education
Emergency fund	Purchasing own hme

This is just an example. You can make your own short and long term goals.

5. CONTROL YOUR IMPULSES

Online shopping today thru the use of ATM Debit Cards, Credit Cards and E-Money makes the spending of money easily. Especially on things we want rather than need. Studies have shown that self-control is a bit like a muscle that tires out with use.

To achieve this, you need to know what is the difference between wants and needs. An individual needs are limited while his wants are unlimited. Needs are something that you must have, in order to live. On the contrary, wants are something that you wish to have, so as to add comforts in your life. Needs represents the necessities while wants indicate desires.

If you follow this simple tips, congratulations! You are now aware on how to save money properly.