There is a saying ‘Easier said than done’. It is actually true in case of saving money also because talking about saving is very easy and getting it started really needs a lot of effort. It looks difficult to inculcate a habit of saving money but once this practice is developed it becomes easy to pursue the financial goals.
The first thing to be kept in mind before saving is your spending capacity. Keep a record of all your expenses and an account of every penny spent with the help of Expenses Inflation Calculator. Organize this data, analyze it and plan how to cut down your expenses. Once you have managed your funds systematically, you will find that you are left with some money which you can save. But this practice should be followed every month.
Another successful way of money saving can be a well-organized budget. Create a budget outlining your income and expenses and how to match up between the two. Plan your spending and limit overspending. Also maintain a provision for unexpected or regular expenses which do not occur monthly. This will give you an idea about how much can save on your part. No matter what make sure to put away 10-15% of your income as savings. Consider it as a regular expense similar to other expenses which you cannot avoid. Cut-back on your expenses if they are high especially on luxuries or entertainment.
The best way to save money is to set a goal. Just ponder over something for which you might want to save money and then figure out how long it might take you to save for it. You can also take the help of our Goal Planning Calculator if you have any difficulty in figuring out the time-frame for accomplishment of goal. This will help you in planning for an event in advance and you can get enough time to save. After focusing on your income and expenses the next big task in front of you is to prioritize your goals. Deciding on your priorities will give you an idea of where to start saving. Be sure to consider your long-term goals but don’t let your short –term goals take a back seat.
Almost all the banks give you an option of automated transfers. It is a great way to save money as you don’t have to think about it. This reduces your temptation to spend. It is a perfect choice for those who feel saving is not their cup of tea.
Habit of saving money is really very cumbersome for some people. Hence the most effective thing to make saving a habit is to follow a simple principle-‘pay yourself first'. It simply means putting aside a pre-determined sum of money before using it for spending. The two smart ways of paying yourself are -
(i) Automatic transfers in which your money can be easily moved from your checking account to your savings account; and
(ii) Payroll deductions in which your employers will automatically deduct a fixed percentage of money from your paycheck and deposit into an account of your choice.
Thus, in order to develop a habit of saving money you need to be determined, value your money and have the power of saving ‘NO’ to unnecessary expenses. To make your task easy we have a lucrative offer for you where you can Match Financial Portfolio with your goals. Also be firm to use ATM of your bank and not much of your credit card which can also contribute in saving money.