So you need to have some extra money to spend on some certain occasion but the idea of actually putting away money for that vacation or item or anything you have in mind may not be as enjoyable as spending it. You find yourself waiting for that paycheck and then- boom! you have used up all your earnings.
How about setting up a savings plan and putting away that little or large amount of money that is spent on things you cannot really account for. You may need to save for a party, graduation, or even vacation. Simply put, you need to save for the future.
Saving your earnings does not mean you deprive yourself of the essential needs but it simply means putting away that extra money that you spend on unnecessary items and that what you save will not affect you negatively on the long run.
Piggy Banks are not meant for children alone. Adults can have piggy banks too. It's even more refreshing for stay at home Mums. However, if you think a piggy bank is not appropriate for you, then save your money in a bank. Other places to save can be in a deposit box and your purse specially purposed for savings. Make sure you don’t pick this particular purse anytime you want to step out or go shopping otherwise the aim of saving with it might be defeated.
Savings are like delayed gratifications with immense reward. So no matter how large or little your earnings may be, you will be happier knowing how to save some of those cool Benjamin's. Here are few saving tips to consider:
1. Make A List:
Make a list of the things you spend monthly and sift out those that are 'heavy' for example rent, and so on. Then determine the 'not-so-heavy but not-too-light' ones such as food and clothing items. Also determine the 'light' items such as extra phone (if you really don't need it).
Of course, heavy ones on your list are the essential ones you cannot do without monthly. The not-so-heavy items on your list such as groceries, you have to decide those that take the extra bucks but are not that important for that month. The light ones you can do without, why don't you save that money you spend on such items.
2. Start Saving Little At A Time:
You don't have to save large amount of money right from the beginning. In fact, except for a few who can do that without being overwhelmed, it may discourage you before you reach your goal. That's why your savings should not affect you negatively. Save what you can.
3. Save For Your Retirement Now That You Can:
We are all getting older and one day, will retire. For some it’s many years away and for some others retirement is really close. This calls for another reason to save.
4. Put Away That Extra Little Money Before Or After Your Expenditure:
Develop the habit of saving the little amount that remains after making your list before or after shopping. after you must have determined and removed the unnecessary indulgences from your list, keep away the money before you go shopping or if for some reason you are not sure of your list, then after you return from shopping, save the change you have left. You might be surprised how much all those coins will amount to after some months.
5. Have A Different Savings For Extended Family:
If it is possible, have a different savings for those who depend on you like your aged parents. This way if you need to see to their needs, you do not have to dip your hands into your personal or immediate family savings. It will relieve you and your immediate family some financial stress and also allow you to focus on you, your spouse and children when you need to go for special occasions and vacations.
6. Plan To Shop Once A Week And Stick To Your List:
Reserve a day in a week for shopping. This will enable you to cut out those impulsive spending and save more.
7. Plan To Buy In Bulk:
After earning your income and you are about to buy some food stuffs, it’s better to buy nonperishables in bulk. By this method, you buy more and spend less, compared to when you buy little quantities through the month. Buying in bulk makes you reduce the number of times you shop through that month, thus reducing unnecessary indulgences.
8. Don't Borrow Money To Meet A Need.
Unless it's very essential that you genuinely have to, don't borrow money to meet a need. Borrowing to meet a need will only plunge you into more debt and when you later have your income, you won't enjoy it because you'll need it to offset a debt.
9. Save according to your income or family expense:
If your income is large, it is possible to save more. However, this is also subject to your routine expense or how you keep your home running. If your income is little, your savings might be little, but that should not discourage you. Save whatever amount you can. That little amount will relieve you of some worry compared to when you did not save at all.
Saving some little amount from your income should not really stem from the aim to meet a certain future need. But just the thought that you have some money tucked away somewhere for rainy days will definitely put your mind to rest.
Tagged: #Saving, #Reduce Debt, #Making Extra money, #frugal Living #financial intelligence