How To Save Money
Saving money, especially this time and age when there are so many temptations calling out to you every second of the day, is very, very difficult. From loans which turns into college debt, to buying highly expensive smart phones which is said to be at the value of a person’s kidney, needless to say, millennials or anyone born in modern generation will and have a difficult time in preventing themselves from spending.
Now, the big question is how do you save money?
As stated before, there are so many temptations here and there; however, it is also important to take into account that due to inflation and increase in demand, prices even for some common goods have skyrocketed to the point that the marginalized part of society increased more than the capable ones or the middle class and above who are able to buy their daily life necessities. Thinking about this, it is almost an impossibility to even save money, especially for those living in cities or areas where taxes are high with very low income and some do not even reach minimum wage, or rent is high due to congestion but there are still many ways in order to save money, regardless of whether or not, you are saving a huge or small amount of cash per period.
The following are tips and tricks in order for you to efficiently save your dough:
I cannot put enough emphasis on how important it is to note down every expenses you make. Keep track of EVERYTHING – yes, that means even the cost you spent on toothpaste, newspaper, snacks, everything. You need to take into account every penny, every cent you spend, and you need to be able to efficiently organize those set of data so that once you need to consult your bank or in need of money to pull out, you are sure on how much money you have left and what you actually spent on instead of spending your money like there’s no tomorrow.
By this I mean, plan ahead. If for example, you want to save a million dollars in 4 years’ time, make a timetable on how much you should save per interval and restrict yourself to how any dollars you can only spend.
- Choose a Target to Save for
Once you have set an amount you want to target, you now have to choose on what you will do with your money after. You can either save money for material possessions such as a car or a house or you can simply put it in your savings account in the bank for retirement. The choice is up to you. Choose wisely.
- Efficiently Decide on your Priorities
Material possessions have a limited life span, especially for technology such as cars or phones. For sure, it is inevitable that your car must be replaced, say after 10 years or so. It is then important for you to save money, not only for long-term goals such as retirement but also for short-term goals such as replacing whatever it is in need to be replaced.
- Use Legitimate Means of Saving Money and Make it Automatic
Saving money in a piggy bank is good for pennies; however, saving money for many wads of cash should be saved in another place, particularly in a bank. You are free to choose which type of bank account you want to save your money in but I highly suggest you put your money in a savings account, make it a habit to never always do cash transactions by availing modes of payments such as cheque and credit/debit card. Another thing is you should have the habit of saving money automatically.
For security purposes, it is important that you watch your progress per month. This will help you and encourage you to continue saving money and be able to hit your goals quicker and easier.
Ways To Save Money Essay
Money is a vital asset in life and without it you could end up with nothing. That is why saving money is even more crucial. With the economy the way that is and prices on our everyday items continuing to increase, such as gas and groceries, it can seem almost impossible to save money. There are also those unexpected moments in life where an emergency fund could really come in handy. There are so many other reasons to save money as well like for instance, your retirement. By saving money for when you’re older you can afford to retire more comfortably instead of just living off what the state will give you. Then of course if you have kids you might want to consider saving for their college. These are just some reasons my boyfriend and I find it critical to save money and we do it by just following three simple steps.
The first step to follow is setting a budget. Budgets are a practical way to track your spending and be sure your money is going where you want it to go. To start your budget you need to first identify how you are spending money now. Bills always come first, so start by adding up what you pay a month for utilities, rent or mortgage, vehicle payments, insurance, and whatever else you might pay for. Normally it’s best to write everything down on paper before actually spending any money. You can also have your budget on paper or you can do it on the computer with certain types of software like Microsoft Money, where the program itself does your budget for you. My boyfriend and I do something called the envelope system, where you put money in different envelopes for certain things. For example, one of our envelopes we wrote “phone bill” on so we put the amount of our phone bill in that envelope which is usually $82.00. After evaluating your current spending, set yourself some goals that will affect your long-term financial state.
Step number two is separating your needs from your wants. Hopefully after figuring out...
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