HappyLifestyleJournal
Saving money isn’t always an easy thing to do, especially when you’re earning just enough money to survive. However, there are people who are earning more than that, and they still spend all their pay checks each month. There is always something we need, always something that requires money being spent. Why should we save for the future when we can enjoy that money now, right? But the fact is that in the long run it is smart to save money for the future, even if it means that you’ll have to cut back a little on your spending. But spending less money is the least you can do. Read on to find out how to establish better control over your spending and save as much money as possible in the long run, without giving up too much in the present.
1. First thing you do when you receive your salary should be putting a certain amount of money on the side.
You should first calculate how much you need each day, how much you usually pay for the bills, and count some money in for unplanned expenses such as birthdays or broken things in the house that need fixing. Then, see how much you can put away. The best thing would be to arrange a certain amount of money to directly be transferred to your savings account as soon as you get your pay check. That way you won’t have to go through the process of deciding how much you’re going to save each month, but all the money planned to go into the savings account will be automatically transferred, leaving you with the money you can actually spend without feeling guilty. Even if the amount of money you’re able to save is small, it will add up in the course of months and years. Nothing is insignificant or too little. So don’t think “I don’t have much to put into the account, I will put in next month,” because next month will never happen that way.
If for some reason you are unable to set up a certain amount of your salary to go into a savings account automatically, then you’ll have to do it ‘manually’. In that case, you should decide on a specific number and stay committed to your goal. You have to make it a habit and stick to the same amount of money at the same time each month. You’ll see how easy it will become in time.
2. Avoid getting into debt.
While some people can afford to buy a house worth millions of dollars without getting loans from the bank, many others can only afford to purchase a property if they get that loan and pay it off over the years. That kind of debt is understandable and very frequent. However, there are many other instances when people could go on without getting loans, but they do it anyway, and they later pay them off and can’t put anything on the side. And if you don’t pay regularly, interest will accumulate, and so will your debt.
If you have to get a loan, make sure you’re able to pay it off as soon as possible, so you can be free of it and start saving money for yourself.
3. Save money for something
Having a reason to save money will keep you much more motivated than just doing it for the sake of it. Set achievable goals and make a plan to save a certain amount of money in a certain period of time. Those goals can be buying a house, a new car, starting a business, or whatever is important to you personally. When you’ve set your goals, go steadily towards it and monitor your success. Whether your money is automatically being transferred to a savings account each month, or you’re putting it away somewhere inside your house, put the same amount of money (or an amount close to it) each time, so that you would achieve some balance and constancy.
4. Keep track of your spending
You’ve decided that you’ll start saving money, but it just seems to be disappearing unexpectedly? Your expenses are larger than you expected or hoped for? It is time to start keeping track of your expenses, whether by writing down what you’re buying and where your money is going each day or by saving all your receipts. Later, you can check all of it and see if you could have saved some money and if you’re buying too many things that you don’t need. Once you realize what you can do in order to spend less and save more, it will be easier for you to become more organized.
