How do you feel when you see a lot of saved money in your account? Great right! But, sometimes we seems to have spend a lot, and unable to identify where and when. Do you know that there are lots of secrets to save money, while you are working and living alone. You ask how? Here are some tips on how to save money, to live a fulfilling life afterwards.
Tips To Save Money
1Create a budget
Before, you even dream to save money. You have to know where your money is going, and without creating a budget plan, there is no way. It can help you decide on where to make cuts or help in finding extra money.
You don’t have to make it a necessary chore. In fact, do you know that many successful people get through without making the track of every penny. You can also try the same. But, do remember sitting and find out where are all the spending you doing. How much you are spending on groceries, housing, entertainment, utilities, and debt? Once, if you have created a clear picture of where the most of the unnecessary, spending you are making, in a typical month, then you can spot the problem areas. After the problem area is being noticed, then you can have a better idea of where you can cut back and also by how much.
Then you can also use that money in your savings. This idea, is to paint a picture, of your spending and not much about every penny you spend. It can be a helpful exercise to keep the spending under control.
2Pay for yourself first
When you are done by identifying, where is it that you are spending the money, then you can have some few more spare money, which you can put aside, into your own savings or even your retirement plans. Do you know the another secret of saving money? It is about paying for yourself first. It is a pretty common phrase, and you might have heard about it a lot of times. But, do you know, that is said a lot because it works a lot too.
If you are those people who wait until their paycheck hits in their account, to pay bills, then it is the biggest mistakes. After the paycheck arrives, when you pay the bills, and decide to save the rest that is saved, remember that by that time, the amount becomes very small, and you become worried at the end of that month.
You must treat your savings just like you treat any other of, your bills. If you make a goal of saving a particular amount of money, saying 1000 Rs every month, then the most important part is to stick to that part. Think it as in terms of bill, then it is more likely to make more deposits and can also be your emergency fund.
Only thinking about your monthly savings as a bill, is not enough. You have to remember to pay for yourself first. You must create an automatic savings plan, before you even get a chance to spend them.
3Spend Less Than You Earn
Always,remember to spend less than whatever you earn. This thought is the best holy grail of personal finance. But you are unable to utilize this secret, then you will never be able to save any money. There is no way around, to spend less than the earning. It is all about cash flow.
Suppose, if you are earning, 10000 Rs a month, and is spending 10010 Rs, then you are now -10 Rs. Did you think of from where id that 10 Rs coming from? Mostly, it will be borrowed money, from a credit card or any such kind of loan, and that borrowed money also comes with certain interest. Which means, you have spent more that just 10 Rs on a whole. When you start doing this, every other month, with many more large amounts, then it won’t take much time to be in the debt of lakhs of Rupees. Later, there won’t be any money to save from.
When this debt mounts up, you will find that you are just making minimum of payments every month, then, it will turn out, that you might have been spending the next ten years or more for something that you cannot afford, and thousands of money on interest.
Dothese secrets, sound like a common sense? Well, yeah they are. Many of us, think about making budget, staying out of debt, and put aside some money for the future, but still you are unable to do it. These sound management of the money is the secret of making a foundation of personal finances. But, in all this, one is certain, that if you can properly budget your money, that is, spending less, then whatever you earn, as well saving for the retirement account, before spending it. You will be able to build wealth as well as save money.