By Matata Mercy
Have you been struggling with building the culture of saving money and you seem not to actually find out a way in which you can be able to keep some money in your pockets?
You are not alone, many people out there are struggling with maintaining a savings culture. Today, i would like to give you some tips on how you can be able to save some money easily.
1. Take record of your expenses
In order for you to be able to track your money properly, you will need to record the amount of money that you spend on different things or your expenses.
This will help you to get a clear picture of how your money is being spent and how you can find ways in which to save those that you seem to be wasting.
2. Make a budget for your savings
The moment you know how much you spend in a month on your expenses, then you can be able to prepare a budget that can help you make workable expenses for the month so that you are able to avoid overspending.
Your budget should actually be able to show how your expenses can be able to measure up to your income. This will help you to plan your spending and also help you to be able to avoid overspending.
You should also include some of the expenses that come in once in a while, things like car maintenance.
You should also include a savings category where you can be able to save 10 to 15 percent of your income regularly.
3. Figure out how to reduce your expenses
If you discover that your expenses are very high and you are not even able to save some amount of money then you will need to find out how you can be able to reduce or cut on your expenditure.
You should take some time to identify some of the nonessentials that you could actually spend less on.
Some of the things like entertainment and going out to dine could be draining you of your hard earned money unknowingly.
Find out some ways in which you can reduce on your expenses on fixed expenditure like cable television or cellphones.
4. Set up some savings goals for you
One way in which you can be able to save properly is to set for yourself a goal.
You can start by thinking about the things that you want to save for for example you could be saving for your upcoming marriage, for a vacation or you are just preparing for your retirement.
You should then find out how much money that you actually need for you to be able to accomplish your goals, then you can figure out how long you should save so that you are able to get your hands on that kind of money.
If you are saving for your child's education or for your retirement then you will need to put the money in an investment account like IRA or some other financial plan.
Start by setting for yourself small and achievable short-term saving goals that are fun and make your saving experience memorable.
You could decide to save for a smartphone that you cannot currently afford right now, this will reinforce your saving habit for the long haul.
5. Select the right tools for your savings scheme
If you are just saving for some short-term goals, you can consider opening up a savings account and you should be able to process a certificate of deposit and will hep lock up your money for a fixed period of time and some rate that is higher than the one on the savings account.
You could also consider securities such as stocks and mutual funds.
These investment products will be available for you through the investment accounts with a broke-dealer.
You should take time to look at some of the options available by taking into consideration things like minimum balances, fees and also interest rates.
This will help you choose the mix that can help you save properly for your goals.
6. Start saving automatically
In this digital world, all banks do have an automatic money transfer strategy and you could tell your bank to transfer a certain amount of funds into a savings account every time you are able to earn some money.
You can choose how much money and when the transfer should actually be made.
Being able to split up your money deposit and also set up some automated transfers are some of the simple ways that you can be able to save money since you do not have to make up your mind and it will help reduce the temptation that you do have for spending that money.
7. Set your priorities right
After you have been able to figure out your expenses and income, the next thing that will most likely have a very big impact on your finances is the way you will allocate your savings.
You should be able to remember the long-term goals that you set for yourself, you should ensure that your plan for retirement doesnot take a backseat in the process.
If you know how to prioritize your savings, then you will know exactly where to start saving from.
8.See your savings grow
You should be able to reveiw your budget each and every month so that you can be able to track your progress.
This will not only help you to be able to stick to your personal savings but it will also help in identifying and fixing problems easily.
If you know how to save, you will build the motivation and inspiration to find more ways to hit and also be able to reach your goals quickly.
Building a savings culture is possible but you will need to start small and grow until it becomes a habit within you.
Have you been struggling with building the culture of saving money and you seem not to actually find out a way in which you can be able to keep some money in your pockets?
You are not alone, many people out there are struggling with maintaining a savings culture. Today, i would like to give you some tips on how you can be able to save some money easily.
1. Take record of your expenses
In order for you to be able to track your money properly, you will need to record the amount of money that you spend on different things or your expenses.
This will help you to get a clear picture of how your money is being spent and how you can find ways in which to save those that you seem to be wasting.
2. Make a budget for your savings
The moment you know how much you spend in a month on your expenses, then you can be able to prepare a budget that can help you make workable expenses for the month so that you are able to avoid overspending.
Your budget should actually be able to show how your expenses can be able to measure up to your income. This will help you to plan your spending and also help you to be able to avoid overspending.
You should also include some of the expenses that come in once in a while, things like car maintenance.
You should also include a savings category where you can be able to save 10 to 15 percent of your income regularly.
3. Figure out how to reduce your expenses
If you discover that your expenses are very high and you are not even able to save some amount of money then you will need to find out how you can be able to reduce or cut on your expenditure.
You should take some time to identify some of the nonessentials that you could actually spend less on.
Some of the things like entertainment and going out to dine could be draining you of your hard earned money unknowingly.
Find out some ways in which you can reduce on your expenses on fixed expenditure like cable television or cellphones.
4. Set up some savings goals for you
One way in which you can be able to save properly is to set for yourself a goal.
You can start by thinking about the things that you want to save for for example you could be saving for your upcoming marriage, for a vacation or you are just preparing for your retirement.
You should then find out how much money that you actually need for you to be able to accomplish your goals, then you can figure out how long you should save so that you are able to get your hands on that kind of money.
If you are saving for your child's education or for your retirement then you will need to put the money in an investment account like IRA or some other financial plan.
Start by setting for yourself small and achievable short-term saving goals that are fun and make your saving experience memorable.
You could decide to save for a smartphone that you cannot currently afford right now, this will reinforce your saving habit for the long haul.
5. Select the right tools for your savings scheme
If you are just saving for some short-term goals, you can consider opening up a savings account and you should be able to process a certificate of deposit and will hep lock up your money for a fixed period of time and some rate that is higher than the one on the savings account.
You could also consider securities such as stocks and mutual funds.
These investment products will be available for you through the investment accounts with a broke-dealer.
You should take time to look at some of the options available by taking into consideration things like minimum balances, fees and also interest rates.
This will help you choose the mix that can help you save properly for your goals.
6. Start saving automatically
In this digital world, all banks do have an automatic money transfer strategy and you could tell your bank to transfer a certain amount of funds into a savings account every time you are able to earn some money.
You can choose how much money and when the transfer should actually be made.
Being able to split up your money deposit and also set up some automated transfers are some of the simple ways that you can be able to save money since you do not have to make up your mind and it will help reduce the temptation that you do have for spending that money.
7. Set your priorities right
After you have been able to figure out your expenses and income, the next thing that will most likely have a very big impact on your finances is the way you will allocate your savings.
You should be able to remember the long-term goals that you set for yourself, you should ensure that your plan for retirement doesnot take a backseat in the process.
If you know how to prioritize your savings, then you will know exactly where to start saving from.
8.See your savings grow
You should be able to reveiw your budget each and every month so that you can be able to track your progress.
This will not only help you to be able to stick to your personal savings but it will also help in identifying and fixing problems easily.
If you know how to save, you will build the motivation and inspiration to find more ways to hit and also be able to reach your goals quickly.
Building a savings culture is possible but you will need to start small and grow until it becomes a habit within you.
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