It’s not a secret that most of the people find it difficult to save money. While this is the fact at hand, strategizing on your income, reducing your expenditure on some of the unnecessary purchases, and having a saving goal are some of the ingredients that will go a long way in boosting your savings among others that we will discuss herein.
The art and the goal of savings is to achieving financial independence.You have got to make wise and calculated financial decisions with your income so that you are left with a certain percentage to put in your savings. Here are the 5steps that you should take to improve your savings.
- Have targets
Always have a certain set goal. A specific number you give yourself to achieve by the end of a particular period. Say your weekly salary is $300. Set a target of saving at least 10% of $300 per week. Itmay not seem like much but after a few months, it accumulates to a good amount. Exercise discipline by staying focused on saving money. Strive to achieve your target and channel that straight to your savings.
- Refrain from extra spending
It is very tempting to spend money on something you think you need without actually taking time to think about it. To stay on the safe side, before you head out to shop, prepare a shopping list. If you haven’t planned on buying something, be it a product or a service, then don’t do it. Remember you always can budget for it later. Impulse spending is the number one culprit behind lack of saving.
- Know what you are spending your money on
Take time each month to go through your shopping receipts and monthly bills. This way you can see exactly how much you spend on each item. Thereafter you can decide on what to eliminate or cut down on. For instance you could find that a huge chunk of your money is spent on entertainment. This doesn’t qualify as a basic need. Reduce the cash you spend on movies, alcohol, and going out to the club, for instance. Save whatever cash remains. Remember not to withdraw it later, because that way you won’t really be saving. Unless it’s a serious emergency, stay far away from that money.
- Credit card etiquette
Also known as plastic money, credit cards are God sent. This card gives you the freedom to purchase anything without a care in the world of the costs involved. Wait until the credit card bill is due and you start questioning your own purchases. Practice restraint when using credit cards. Only use them when necessary. In addition, use cash in place of credit cards. It will eventually reflect on your monthly savings. You’ll see that you save more when using cash than with credit cards.
- Saving for spending
If you’re ever faced with the choice of whether to save or to spend money, choose to save. Once your salary is paid, there’s an overwhelming push to spend it. To make sure you achieve your saving goals. It is better to deduct cash that you previously committed to saving first. Thereafter, use the remaining amount to cater for other important expenses.
With economic times getting tougher by the day, our wallets grow thinner. Saving remains the best means towards achieving financial independence. You could be saving for school, a business, a house, anything. No one said it was easy, but through focus, discipline and determination you can achieve anything.