The more money you have, the more you can save. Saving up on money should be an important priority for any person. Most of us have short term desires such as that expensive motorcycle or tech gadget that we want to get our hands on. Some like to save up in case of a rainy day. And, all of us have to save money for our retirement, the last of our days when we won’t be earning money.
1. Savings Account
The first thing you want to do when you are making plans to save money is to create a savings account. A savings account gives you a place to put your money in. Most savings accounts are known to have high interest rates. Once the money goes in, it is not easy to remove it. There are different savings accounts which don’t allow you to write a cheque for it or it has a limited number of financial withdrawals. This will greatly discourage you from withdrawing money from your account.
2. Account Your Money
The only real way to start saving your money is to account for it. Once you know where it is going, you will be able to decide on the purchase you can cut down on. You can strategically break up your income on spending, debt payment and savings.
3. Save on Transport
You probably are used to travel around in a taxi or driving your own car. Once you account for your money, you will realise how big a chunk transport expenses take up, be it the taxi fare or cost of fuel. That will prompt you to think about ways to reduce the bill. We in edmonton are used to running cards in idle mode because of the cold weather, which also increased costs.
4. Skip the Restaurant
A big amount of your spending would go to eating out. when we have asked our clients to track their budget, we have generally found eating out is the biggest expenses which they can cut. Going out and eating once in an week for an family of 4 will mean minimum $100-$125. Most of us don’t bother with cooking at home and prefer to go out or make use of home deliveries. It’s time to reduce the times you visit a restaurant. When you go to office, it would be much better to pack a lunch.
5. Indulgences
When you are trimming down on unnecessary expenses, it would just be inhuman to keep you away from your indulgences. Indulgence can range from constantly eating ice cream or buying a box of Ferrero Rocher! In fact, if you try to push them away, they will just force you back on them. Instead, a better strategy would be moderation. Think of it as a reward for savings that you do once a month.I have keeping the bottle of water near me stops me from craving for that impulse eating.
6. Impulse Saves
Everyone has experienced impulse buying, but what about impulse saving?Impulsesave is a goal based app which encourages you to do impulse saving! Yhe money you save should be done automatically and you do not see the money.
7. Invest
For many, saving and investing go hand in hand. Instead of digging a hole and hiding your money, you should invest it. Investing it allows your savings to grow to an even bigger amount.
8. Credit Card
The biggest drain to your saving plans will be credit cards. If you have too many credit cards, you are going to be more focused on paying off the debt rather than saving your income. Instead, have one credit card for daily use and just another for emergencies.Also use that credit cards once in a year as that is an important part of credit score.
