There are a lot of ways to save money but the bigger question is, "Are you up for the challenge?" I for one makes it hard to fulfill some or even most of these simple steps because I'm not ready yet. Or maybe the better way to say it is that, I'm not dedicated enough to fulfill these things. Believe me its not easy. It maybe simple but you need to have a purpose to achieve this. Here are some very simple steps yet effective ways to do it.
1. List all of your
daily and monthly expenses
First you need to analyze how much are your monthly earnings versus
your expenses. So I suggest for you to record all your expenses for the day for
one entire month. Once you've done that, you'll see that some of these expenses
are not really needed or can be minimized.
2. Save for
emergencies
They say that emergency funds need to be at least 3 times worth of
your monthly salary. But how can you save this if you have nothing to start
with. This has to be one of your ultimate goals. You can start by saving your
monthly bonuses and your Christmas bonus. It doesn’t matter how big or small it
is as long as you something to start with.
3. Set your goals
and make priorities
It is important to set your short term and long term goals so you have
a reason for doing this. Short term goals are usually around 3-5 years while long
term goals starts from 10-15 years from
now. These goals will keep you focused on what you want to be doing.
After setting your goals, then you can start prioritizing things. Ask
yourself, what am I saving this for? Do you want to buy something expensive? Do
you want to travel locally or internationally? Are you saving for your child’s
future? Do you want to start a business and retire early from being an
employee? Do you want to start a long term investment? These are just a few
examples but don’t limit yourself. Make a list of the things you want to do in
life and start prioritizing.
4. Plan your budget
There, now you have a better
understanding on how you spend your money everyday and how you would want to
spend your money in the future, then you can start budgeting. Plan on your
daily budget based on your pay schedule. Get a list of the things you need like
groceries, daily meals, utilities, etc. Cut out on those unplanned expenses and
stick to your budget. That’s the most important. Keep yourself focused on your
goals and your priorities and skip those urges to go on shopping or eat in an
expensive restaurant. And if you really have to buy something, look out for
those sale items or discount vouchers to
save more rather than buying items on a regular price. There are websites that provide voucher codes for several online shops such as My Favourite Voucher Codes.
There are several ways to save money but its not as easy as writing this article.
I’ve been to most of these situations before so I know its really hard.
Discipline is one of the key to this new endeavor. Its not bad to spend a
little for yourself every once in a while but it has to be as seldom as
possible. If you keep telling yourself that you deserve a treat every payday,
then you won’t ever away from those unwanted expenses. Plan ahead then check out your progress and keep your savings out of reach so its not
easily spent.
