4 Simple Yet Effective Ways to Save Money

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.