Savings are a part of every life. And people have different reasons for saving. The secret to having wealth, some claim, lies in your ability to save. Taking an inventory of your monthly income and expenses, you’ll probably be surprised at the amount of money you spend monthly. Not only on necessities but also on your ego in order to look good. Spending your money to look good is not a crime, but hey, if you want to live comfortably after retirement then you better save some for the rainy days. Am not saying life is always horrible after retirement but you’ve got to look out for yourself financially. And you can only achieve this by saving. Now the question is, ’how can I save?’ Read on to discover proven great tips for saving money.
Record your expenses
Yeah, you heard me. If you don’t figure out how much you spend, how will you be able to know how much to save? Keep track of all your expenses – the amount you coffee, transportation or groceries. Make sure you account for every penny you spend. Everything, leave nothing out. Total each amount after a detailed analysis of your spending. This is the first step and will enable you scrutinize your spending habits in order to stick to do away with unnecessary spending habits.
Make a budget
Once you have the exact value of your monthly spending, you can now devise means of reducing it by making a list of the important commitments. Note the word important. This list should cover only important necessities like water, electricity etc. and your budget should measure up to your income. Creating a budget is not rocket science. It doesn’t matter how it’s written. But it should contain a detailed analysis of your spending against your income, putting into consideration expenses that occur regularly but not every month like car maintenance in order to limit overspending.
This is a great and effective way of saving money, often found in newspapers, websites, and magazines. By using coupons, you could save on products you use regularly, sometimes you could even get free things. Coupons are available, all you have to do is pick up your smartphone and search for them and save $$$. Investing a little time in coupons will save you a great deal from suffocating yourself in debt before the next payday.
Invite Friends Over
Eating out often looks so good we forget we’re spending a lot. You love the food, you love the electrifying atmosphere of the place. It could even be the waitresses. Whichever it is, you’ll keep reaping yourself dry until you’re neck-deep in debt. The good news is, there’s a better way. Invite your friends over. Bing a bottle and have fun or whatever you call fun. You could spend buying food for the evening though but it’s a lot cheaper than paying for a high restaurant. This will even save you unnecessary transportation costs of paying for taxis or bus.
Choose something to save for
I have another ‘focused’ tip for you. Choose something to start saving for. To this singular purpose, you’ll devise a budget that can help you achieve it. It could even be a trip to the Bahamas or the Chile islands. Figure out how long it might take to save for it.
However, you must note that investments come with risks and you can lose a lot in a twist of fate. If you saving for retirement, or our child’s education, consider saving into an investment account such as IRA.
Make saving automatic
The secret to money accumulation and a healthy saving plan is automatic nature of your savings. Automatic savings offers you the flexibility of even using your checking or savings account. This is an autopilot way of saving money because you don’t even have to think about it. It reduces the temptation of having access to it physically.