How many promises have you promised to yourself to spend less and save more?
I am sure you would have numerous reasons to state for choosing not to save but there are actually more reasons why you should save. One of the hardest thing to start saving is to get started. Saving money is not really trimming your expenses and that should not be the point anyway. It’s about how your spending reflects the priority in your life.
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Easlerlin Paradox- A concept of happiness economics had already proven that money can get you happiness but only to a certain point. So use your money to get happiness till it ceases to do so.
There are many ways including changing our spending habits that can bring happiness, reflect our values and yet save money.
1. Is it Necessary?
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Before making a purchase, think if its really required and if its not then refrain from spending. Of course you need to reward yourself but do it in moderation as saving is the goal.
2. Record your expenses
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Simply create a budget that tracks all expenses. It helps you to gain control over your expenses. Account for every penny and start simple. Once you have the data, you can prioritize and take some off which can be managed or procured later.
3. Pay Bills on Time
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Do you really enjoy paying extra money to creditors? Of course, no. When you pay your bills late, you pay extra interest. Not only it spoils your credit but forces you to pay extra.
4. Limit Dining Out
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Person who dines out for lunch ends up spending a lot. Although it may look a small expense if its looked as daily expense but over a month it can accumulate to a higher amount. Here is an alternative, prepare your own lunch, it’s healthy and helps you save money.
5. Set realistic Goals
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Evaluate your personal circumstances and set realistic goals. This encourages consistency and your goal is attainable. Once you have met your first goal, you can then increase it for better results.
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This is the second biggest expense after housing. So keeping a check here will perhaps get you the next biggest buck for your savings. Walk- if you live in a pedestrian – friendly area, this is the best mode of transportation. It’s absolutely free and gives you a chance to exercise!!!! Take public transport if you live in an area with bus facilities rather than private transport.
7. Open a savings account
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Having a savings account limits access to extra money. It’s a great safeguard because it lets you think twice before you make a choice of withdrawing money.
Search for best interest rate, deposit interest etc. before you finalize the financial institution.
Every little bit counts
A penny saved is a penny earned – I am sure you have heard this phrase quite a number of times.
Do you remember getting money from your grandmother or grandfather and as soon as you grabbed it, they reminded you to put some in piggy bank?
This may sound little outdated but it’s a simple money saving technique be committed, and watch your money grow.
There is plethora of information accessible on financial topics in the internet.
Having control over daily expense habits is the most effective and simple ways of saving money over a time, it then becomes a habit and you don’t have to push yourself to the corner.
** Thanks for stopping by, please leave your comments and feedback, I would be happy to react to any of them **