An ultimate guide in saving money
It is true that the hardest thing about saving money can actually be to start saving your money. Taking that plunge and taking that step in the saving direction can be the hardest part of saving your money. Here, we have a whole host of information to help you have for short-term goals and also for long-term goals.
Here, we have some of our best tips on how you can start saving your money. Don’t worry, we are not putting you on a spending ban immediately. We just have some ideas to help you get started, and you can work out what suits you the best.
Make sure to keep a record of your expenses
This is our first piece of advice for you. One of the best ways that you can start saving money is to work out exactly how much you are spending in the first place. We realise this sounds like it will zap the fun out of your life, but it is true that every cent counts. You need to keep a note of your outgoings, and this means every morning coffee that you buy, and every new furnishing for your home along with any cash tips that you give.
When you are in a position where you have collected all of this information, you then need to take your organization to the next level. This means that you need to organize your numbers by putting them into categories. These categories can be as broad or as specific as you want – you could have a gas column, a groceries column, a column for your house costs – and when you do this you will need to total each amount.
Just to ensure that your numbers are as accurate as possible you can use your credit card statements and also your bank statements just for that extra verification of the figures that you have pulled together.
How to budget for savings
This next step is perfect for when you have got all of your figures together. When you are confident with what you have spent in a month you will then be able to get your recorded expenses organized and this will help you pull together a workable budget.
It is important to know that your budget should really outline how your expenses will be able to be measured in comparison to your monthly income. This is what will really help you to plan out all of your spending and this will also be able to help you to limit your overspending. It is especially important that you take into consideration the expenses that can come out of your account every month – for instance this kind of thing could be car maintenance.
When it comes to working out how much of your income you should save, you should aim to try to save 10 to 15 percent of your income.
Should you find ways to cut your spending habits?
If you are finding that your expenses are especially high and that you are unable to save as much money as you would like to, then it could be time to cut back on your spending. The best way to do this is to really establish where that non essential spending is coming from. These kinds of expenses could be entertainment and also dining out.
You can look for ways to save money when it comes to your fixed monthly expenses. An example of this is the amount of money that you spend on your cell phone. Everyone is a victim of being a creature of comfort, and staying loyal to their network provider. However, it is important to really work out if your cell phone expenses are suitable for you. If you find that you are wanting higher or lower minutes or messages or data, then this is your sign to go and find a new plan which suits you better.
If you are keen for more ideas on how to reduce those everyday expenses then you will find that one of the best things that you can do is review your subscriptions and memberships. You will undoubtedly find subscriptions and memberships which you no longer have a use for. This is especially important if you have any subscriptions or memberships that are close to renewal.
Set yourself achievable saving goals
One of the best ways that you can save your money is to set yourself goals that are realistic and achievable. Here’s the thing, if you love spending money on enter or leisure or clothes or anything else, then you are naturally going to find it hard if you set yourself a goal to not spend any of your hard earned money.
This would be pretty impossible.
What you need to do is work out what exactly you are wanting to save up for. Do you want to buy a house, do you want to buy a new car, do you want to plan to go away on vacation? Whatever you have in mind, set this as your saving goal.
You need to try and price up how much you will need to save up so that you can be strict with yourself and budget as much as possible. You can also add to this by putting a time frame on your saving goals, so you then have a deadline to aim for. This will work to motivate you as well as give you direction when it comes to saving money.
If you are especially keen to save up for your retirement then you should consider putting money into an investment account. Here’s the thing, investing can feel risky because you can make money through doing this but then you can also lose money by doing this. When the investment market grows, this ultimately creates more opportunities for growth when the market grows.
Are you looking for more information on how to save money? Give CreditNinja’s guide on overspending a read just to reconsolidate what you have learned here – and this should also help you learn some more tips on how to save money.