How many promises have you made to save more and spend less? There are various reasons why people choose not to save, but there are more reasons why they should.
For instance, the commitment to save allows more opportunities for leisure and eases financial burdens that decreases debt and creates wealth.
Yet, it becomes challenging when family commitments, household expenses, and salaries are considered.
Regardless of income, saving money is feasible with 11 simple steps.
1.
Is it necessary? Before making your next purchase, determine if it is a necessity.
If not, there is a strong possibility that you should refrain from purchasing.
Unfortunately, there are many who do not understand the value of money and how small indulgences can lead to huge expenses.
Although it is good to reward yourself, this should be done in moderation-if saving is your ultimate goal.
2.
Every Little Bit Counts Do you remember receiving money from your favorite uncle or aunt? As soon as you grabbed the money, he/she reminded you to put it into your piggy bank.
Although many feel this practice is outdated, it is a simple, effective way to begin saving.
For example, you can begin with the change you receive from a purchase.
Be committed, challenge yourself, and watch your money grow! 3.
Limit dining out! A person who dines out for lunch can expect to spend an average of $8.
00 to $15.
00 per day.
This may not seem like much, but it tends to add up over a 5 day period.
In fact, you can expect to spend an average of $40.
00 to $75.
00 per week.
By the end of the month, you would have spent $300.
00 on lunch--alone.
Think of this in terms of saving.
If you save this same amount within a year, you can have $3,600.
00.
Here is an alternative; prepare and bring your lunch.
Not only is this a healthier, but it helps you to save more! 4.
Buddy System Do you need additional support to meet your savings goal? You may start by including a group of friends with similar challenges and create a contest that rewards the person who saves the most over a designated period of time.
Not only does this motivate all parties, but it encourages accountability for spending.
Be creative and have fun! 5.
10 Percent People often think of saving as a form of deprivation.
However, saving serves many purposes that included preparing for unexpected emergencies and circumstances, financial security for the future, and the ability to enjoy life without heavy financial burdens.
Many are discouraged by saving because of income-- or the lack thereof.
However, anyone can begin saving.
Every little bit counts.
After you have considered your monthly expenses, you can begin by saving at least 10 percent of your total income per month.
The goal during this time is to decrease and eliminate debt.
If you eliminate debt within six to twelve months, you can begin by increasing your savings goal by another 10 percent.
Keep in mind your savings goal should never decrease, and you will begin noticing the benefits.
6.
Track your Spending This is simply creating a budget that tracks all income and expenses.
Your budget forecasts current and future spending.
In addition, it helps you to gain greater control over your finances.
Although there are many sophisticated budgeting worksheets available, I recommend starting simple.
You do not want to become overwhelmed or spend extra money developing a method you are unable to maintain.
Instead, you may consider downloading simple worksheets online.
7.
Pay Bills on Time Do you enjoy giving creditors extra money? If you answered no, the best way to prove this is to pay your bills on time.
When you pay bills late, you are penalized by paying interest.
Not only does this create a pattern for poor credit, it forces you to pay extra money.
A good rule of thumb is to pay bills before or on the date required.
This helps you to avoid interest and moves you one step closer to financial freedom.
8.
Paradigm Shift We have the desire to help so many people, particularly our families.
When financial resources are limited, negative conflict usually follows.
As a result, it becomes necessary to evaluate those relationships that create unnecessary hardships and financial burdens.
This does not imply that one should avoid offering assistance to others, but it challenges motives to avoid enabling.
9.
Open a Savings Account Having a savings account is advantageous for so many reasons that include limited access to spend money.
This is a great safeguard because it forces you to think about your choices prior to withdrawing.
Before choosing a financial institution, you should inquire about initial deposits, interest earned, student incentives, and etc.
to make an informed decision.
10.
Set realistic goals Some financial experts may suggest a certain percentage to save.
To avoid frustration, evaluate your personal circumstances and set goals that are realistic, encourages consistency, and are attainable.
Once you have met your first savings goal, increase it for greater results.
11.
Educate Yourself There is a plethora of information available on financial topics.
Reading books, blogs, and networking are great ways to get educated about financial matters.
In addition, many educational and financial institutions offer workshops specifically addressing the needs of those who wish to become more financially savvy.