Basic ways to save money

BASIC WAYS TO SAVE MONEY

How to save money. Source: mediaplanet

It takes a lot more than having a bank account to save money. I’m not talking about saving money today so that it could be spent tomorrow on a white elephant project. We will instead discuss the basic ways to save money habitually in order to attain your financial goals.
Getting started is the toughest thing about saving money. How to save money with little income is even more tactical especially for people that are natural spenders. Certain zodiac signs encourage absurd spending sprees. For example, an Aquarian will find it hard to be frugal for the purpose of saving money because Aquarians are inclined to spend outrageously. Regardless of your star sign and financial strength, there are ways you can save for the rainy days. I’ve compiled a step-by-step guide on the basic ways to save money.

MOST OF THE BASIC WAYS OF SAVING MONEY

1. Track your expenses: The basic ways of saving money includes carefully ascertaining how much money you spend daily. Owing to this, you ought to put down in black and white – every snack, beverage, newspaper, and vodka you buy. By adopting this technique, you will undoubtedly be able to figure out how much you spend and make proper adjustment where necessary. Once you have collected the data conclusively, categorize the expenses in a way like groceries, family members’ needs, and clothing and calculate the total expenditure per category. This method will help you quickly discover what you spend your money on mostly, and you would be doing yourself a disservice if you fail to cut down your expenses via this basic way of saving money.
2. Create a Budget: Now that you are able to track your day to day expenses, you need to set a realistic budget and make your recorded expenses align with your budget. It could be a monthly budget or a weekly one. The idea behind this basic way of saving money is to prevent you from overspending unnecessarily. Your budget should mirror how your expenses add up to your income. I understand there are unforeseen exigencies that may arise; it would be judicious to have a backup plan.

3. Plan to Save: Your decision to save money may not yield the results you need without appropriate planning. You have to configure your brain in a way that saving money becomes your second nature. I know this is easier said than done but if practiced and mastered, saving money won’t be a painstaking process. There’s a likelihood that your spending habits will have to be reviewed and modified to enable you to reach your set goals, although this might need some getting used to. This is one of the most fundamental and basic ways of saving money.

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4. Why are you saving?: One of the many basic ways to save money is setting a possible target based on your income. It could be child’s tuition, house rent, car, your retirement or anything worth saving for. The process of saving isn’t simple to imbibe so you will need to remind yourself why you are constantly saving, else you might get frustrated and blow up the money you managed to save in a couple of months.

Read: How to start saving for a house here

5. The scale of Preference Approach: If you had been spending a little too much on entertainment and hangouts, it is about time you cut it down. You need to set your priorities straight. Forgo the things you don’t necessarily need, kill the craving and desire to impress with an outrageously expensive outfit or car. Mark Zuckerberg, the co-founder of Facebook drives a $30,000 car and wears one outfit for days because he understands those things are immaterial and not worth breaking the bank for. To excel in your saving, you need only to buy the things you really need.
6. Method of Saving: If you’re saving for short-term goals, consider using a savings account. But for long-term goals, you should probably use Fixed Deposit which locks in your money at a specific interest rate for a specific period of time. You can read; the gains of setting short term goals by clicking here.
7. Develop the Ability to resist giving up: Many people struggle to keep savings because of the inability to resist the urge of using it up. Chances are, financially challenging situations may arise in a way that; blowing your savings plan may appear to be the last resort. You have to watch out for these scenarios.

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