Tuesday, April 19, 2016

How To Save Your Money In Seven Easy Steps

By Linda White


The thing with most people today is that they love to spend money just as much as they like to earn it. Unfortunately, they also tend to forget that earning cash takes considerable time and effort to do than spending it. When they end up broke and they need the funds to support their daily needs, that is when trouble happens. To avoid this potential disaster, here are some great tips on how you can save your earnings effectively.

Check yourself. Your first order of business is to keep a detailed record of your spending habits. Act like professional accountants and crunch those numbers every time you get hold of all your receipts. This way, you will be aware of where your money goes and your frequency of spending, which will ultimately lead you to rethink your purchasing decisions.

Impose limitations. There is perhaps to better way to curtail your spendthrift ways than by imposing a strict budget or allowance on your daily, weekly, or monthly spending. This will be hard, and you will feel bouts of frustration, but it will all be worth it once you see just how much you can save. Stick to this habit until you get the hang of getting what you want for less.

Portion it off. When you receive your salary, you must always set aside a small amount which will go into your savings. Financial experts strongly recommend setting aside at least to fifteen percent of your income to be considered as your savings fund. When your salary range does not allow you to make that kind of deduction, you need to cut back drastically with your spendthrift ways.

Motivate yourself. You need to take a good hard look at your bank statements and ask yourself the hard questions. Questions such as why you need to save money in the first place and what are you saving it all for. If you can provide concrete and legitimate reasons to those deep internal queries, then use those answers as motivation to continue your mission.

Learn to say no. It will be tough, but you must be able to temporarily sacrifice certain luxuries in your life when trying to save up and fatten your paltry bank account. You will only be setting yourself up for failure if you keep on spending like a madman. So say goodbye to all those unnecessary indulgences and focus instead on the daily essentials.

Consider options. Do not just settle for having your money sitting in a regular bank account when there are various ways of making it grow. Today, banks offer a wide variety of saving plans that will increase your earnings depending on your goals. Good examples include the high yield account for short term plans.

Back to the start. And so you ended up right back where you started, only this time you are checking the progress of your saving habits. Consistency is the name of the game, and being diligent in setting aside a portion of your earnings will leave a lasting impression on your mindset. Pretty soon, you will not even notice that you are spending less and saving more.

When you realize just how much you have changed after making judicious changes in your finances, that is a good reason for you to congratulate yourself. For sure, it is definitely a great feeling when you are able to achieve the steps featured in this guide. Give yourself a well deserved pat on the back for that.




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