You might be thinking, that it’s very difficult to save money, on a tight income, or due to so many monthly expenses that you have to take care of. But, it’s not at all such a painstaking task!
Obviously it does demand sincerity, but it’s not that tedious and boring as you are probably thinking.
You can save money just like that! Any time you are having some unused aimless cash in hand, you should give it to your savings accounts.
But, to make this whole savings activity a lot easier, you have this crisp little blog post that is broken into 3 distinct parts.
Let’s get going then, and see for yourself, how you can save more money each month, and increase your net worth, consequently.
Become a sensible spender, and purchase only what you need.
This is the very first initiative that you have to take, for saving money. Remember, it’s not your income that matters, when you are talking about savings.
What really matters is how much of your income are you spending away.
If you can control the amount you are spending, you can easily start to save money without any extra effort. You will be saving money automatically.
Your purchases are divided into needs and wants, on the basis of necessity and desire.
If you are indulging too much into purchasing goods arising out of your wish, want, and desire, then that’s where you are making the mistake.
When you are aiming to save money, you should be setting limits to your expenditures, and only buy those and pay for those that you need, to survive a very basic lifestyle.
Becoming a bit frugal, is nothing to be looked down upon. It is actually being money smart, and sensible spender.
Therefore, all those costly gadgets, night outs, raves, pub hops, costly grocery experiments, and so on, might just need to be stopped, till you have got a permanent savings flow, per month!
Moreover, this is not enough! You also need to utilize some shopping tricks to save more money, on your each and every spend!
You can buy goods in bulk to avail more discounts, jump onto lower range brands, look out for exciting offers on several e-commerce websites, and stuff like that.
But yes, till you believe you have saved enough to loosen up your spending hand, you should not be spending unnecessarily.
Needs and wants are different! Understand that.
Make use of budgets.
Saving money will only get easier, if you are having a budget in the house.
Infact, you really don’t need excuses and reasons to use a budget. It is a necessary financial tool that every individual should utilise. Without this, financial success and fat savings will only remain a long lost dream.
You can go back to the basics, and start to follow the age old traditional 50-20-30 budget system.
It is still one of the widely used, and effective budget plans for both home makers and bread winners.
A 50-20-30 budget will be dividing your income into three different streams, each having their own fixed purposes.
50% of your income is meant for normal day to day expenses, that you have each month.
20% is the deposit you will make from your salary into your savings account.
The remaining 30% is the special division, that is to be used for luxury, wants, and wish list expenses.
You are free to manipulate this 30% just as you like it. You can even use this to expand your savings!!
Clear your debts as soon as you can:
If you are hanging onto debts, then you can never be successful at accomplishing your savings goals. You really need to take care of those hefty debt payments first.
The more debts you have, more you are paying in interests, and penalties.
Mortgages or student loans, are not counted among them, as they fall under real value and moral investment vehicles.
They are those unsecured high interest rate debts, like credit cards, payday loans, etc, that you should be worried about.
They are real hard and sticky to pay off. So, you got to figure out some nice ways to get rid of your debt problems, surrounding those debts, as fast as you can.
The best is to settle those debts, for good. By doing so, you can save both a lot of money and time, when compared to the other debt pay off methods.
You can pretty much call up your creditors and ask them for reducing your late fees and penalties, or even the debt amount itself. In return you need to offer them a lump sum amount.
If they accept your offer, then you become debt free in no time.
On the other hand, you can also consult debt law firms and lawyers to help improve your debt situation.
Keep in mind, that the faster you eradicate debts, the sooner you will be able to concentrate completely on your savings portfolio.
That’s how you beat debts, and save money each month, without any hassle.
Stay focused with your monetary goals, and you shall be financially independent, in no time.
All the best!