I am going to show you 6 money tips you can pocket for life.
1. Keep a note on all your paymentsKnowing how much you spend is the first thing to note down, in your quest to save money. Keep details of all your expenses—from food, tickets, and coffee you purchase.
Once you have the figures, break down the figures by groups, such as transportation, food, and mortgage, and sum each amount.Try using your credit card or bank statements, if you bank on-line often. Try to sieve out your bank statements to easily identify your spendings.
2. Prepare a budgetHaving gotten the idea of your spendings for a month, you can start to group your recorded costs into a practical budget. Your expenses and income should be in agreement with your income. That is they must at least break-even—so you can track your expenses, and reduce spendings to the minimum.
Having worked out monthly spendings successfully, consider spendings that don’t come often- emergencies and factor them in your budget. Example: Hospital bills, car maintenance and travel expenses.
3. Have smart ways to save moneyYou now have a realistic budget. Make a savings section within it now. Between 10–20 percent of your income must be reserved as savings.You may have high expenses to the extent of not being able to save that much. It is still possible to save.
To do that, find out all unnecessary expenses and clear them off the expenses section of your budget. You must be able to tell apart your wants and your needs by now, and spend more on your needs than your wants.
Your wants are things you can do without, like the extra shoes, whiles your needs are things you cannot do without, like food, when it comes to spending.
4. Come to a decision on your choiceYour choices are going to have a big effect on your expenses and income, and whether you would be able to save money.Be sure to bring to mind long-term objectives—it’s essential to know your retirement needs are equally important as your shorter-term needs.
For example, if your decision is to change your house in the coming years, you could start saving for that project now.
5. Make savings automaticHave a standing order to take a portion of your salary, and deposited in a savings account of your choosing. A standing order is an instruction to your financial institution to make a particular payment on your behalf. This is especially true when such expenses are fixed in nature and routine.
Most banks offer automated transfers between your current and savings accounts. For guidance you can decide on how much, where and when to transfer money. It is a recommended way to save money because you don’t have to think about it and it greatly reduces the temptation to spend the money rather.
6. Keep an eye on your savingsEvery month see how your savings is going. This will help you to know whether you are achieving your savings plans as drafted in your budget.
These simple ‘Help Me Save Money Tips’ will inspire you to save more and achieve your dreams quicker.