Are you planning on saving some money? Is it seeming to you as an impossible task? Well then, this article is just for you! All it takes is little self-control, careful planning and you are good to go! See your savings sum up to a huge amount in no time.
What steps can you take to achieve your goal? Read ahead to know some tips that you can follow to manage your hard earned money and increase your savings.
Prioritize Your Expenditures
There are some basic things such as food, cloth, shelter that you obviously cannot do without, isn’t that so? But there are certain ways that you can take to reduce the amount spent on the same. Start by spending on absolute essentials first and then saving for emergencies.
Keep Records of Your Expenditures
This is one of the most helpful tips that everyone usually forgets. Keep track of every expense, whether you buy a packet of chips or a dress. Make a notebook for the same and go through it at end of each week or month. Analyse everything and now you will know about your problem areas. You will be able to change your spending habits and spend accordingly in the future.
Preparing and Maintaining a Monthly Budget
Plan your financial expenses in advance for the coming month and make sure you stick to it. For example, set aside a certain amount for unavoidables such as electricity bills, rents, food, etc. and deposit the remaining amount in a bank account.
Set Saving Goals and Establish a Time Frame for it
Think this way: “how much should I save per month to buy a house 3 years from now?” Setting reasonable saving goals and establishing a time frame to complete it will motivate you and help you in reaching towards your goal faster.
Cut Down Daily Expenditures
Walk, ride a cycle or take a public transport instead of using your own car or calling for a cab every time. Cut down your number of visits to restaurants. Reduce your energy usage by turning off lights and fans when not in use. Remember that even a dollar saved today can add to a large sum over due course of time!
Avoid Expensive Addictions
Stop drinking alcohol and expensive drinks. Drink tea or coffee to expensive lattes and cappuccinos. Stop smoking too and as a result, not only will you save money but improve your health too.
Prefer shopping some products when they are in sale. Also, consider buying in bulk as they prove to be cheap. Stop taking your credit cards when you go for shopping to avoid being tempted to buy extra products. Take limited cash.
Leverage Unused Space
Do you live in a house or apartment with one or more empty bedrooms? If you have extra space in your apartment or home, then why not rent them out? It can be an additional source of income.
Take Advantage of Incentives
If your workplace provides you with some incentives such as transportation, medical benefits, housing then make sure you make the most out of it.
Start Saving as Early as Possible
The early you start saving, the more will be the benefits. Even an amount of $100 deposited in a savings account that offers 4% interest per year could yield an additional amount of $40 after 10 years! A small but a significant bonus!