Do you find challenging to keep a track on your spending and there is no sign of saving?
Do you wonder how people manage to save? While you spend some extra money on traveling, eating out, clothes, makeup or any other thing you like?
According to many financial advisors your income has to be divided into three major parts; expenses, luxury and saving. Unfortunately, most of us focus on the first two parts and completely ignores the third one. But, saving is essential for your plans as well as financial stability. That is why if you are bad at savings or already doing it, I will tell you some amazing and easy tips today which will help you help you save better and efficiently.
1. Keep a record of your expenses:
The most common mistake which we do on our daily basis is not keeping a record of your expenses. That is why sometimes we spend more than our budget and stand empty-handed in the middle of the month. Since we don’t record our expenses, we have no idea where our money went which results in identifying the factors where we are spending even it is not necessary at all.
Take a personal journal and start writing your day to day, weekly and monthly expenses so that you know where your income is going.
2. Make your monthly and yearly budget:
Well if you don’t make a budget, you will never be able to save in your life. Budgeting is an essential part and everyone does it, but it is vital to understand that you need to make realistic budgets according to the expenses you have recorded earlier. Now you need to take some portion of your income for savings. You can decide how much you can save easily and if you are an aggressive spender or shopper, you need to set a hard target for yourself. Well, at the end of the day it is all about self-control.
3. Make a saving plan:
Writing your saving amount on the piece of paper is not enough. You need to make an entire plan for it. Such as how much will you save per month and how much it will become at the end of the year? It will become more motivated when you see a significant amount. As a result, it will motivate you to stick to your plan as well as save for it. Not only this, your plan will tame your mind how important is to save and how much you have been spending without actually knowing it. That is why make a saving plan for future as far as you want to go.
4. Set a target to save for:
Sometimes saving is just not motivating enough but you need to set and determine what you are saving for?
It can be your new car, a house, college fees, studies expense, your family or baby, retirement or your startup. There are endless possibilities for you to enjoy and that is why you need to make sure that you save for it.
Once you have set a target for yourself, it is much easier for you to save money for it. The primary issue while saving your money is you wish that you have these things, but you never saved money for it and believed that you have little money for these big things. But it is not true; if you don’t save this small amount, you will never have a significant amount for the bigger things.
5. Decide and make a list of your priorities:
We all spend randomly, most of the times!
It feels no issue at the time of spending, but when we spend all the money, we regret it later. That is why if you want to start saving you have to control your spending as well, therefore, you need to make a list of your priorities. It will help you decide where your money should go and what the places you are overspending it are and reduce it from there. Preference can vary from person to person and family to family and can be changed according to your shopping behavior, medical needs, liking or any other factor.
6. Pick the right saving strategy and tool:
It is quite helpful in your saving plan that you either get a saving tool or strategy to do so. Previously every step has taken place on your journal or expense book but not its time to do it practically. There are many companies, apps, online tool and personal finances which you can enroll in and once you do it, the amount of monthly savings will be automatically done and transferred in their account under your name. It is quite adequate for those who find it difficult to save money on their own. That is why if you are one of them you should apply any tool and strategy to save money on a regular basis.
7. Make automatic your saving:
Some banks also allow you to save money automatically as it deducts your pre-selected amount from your account as soon as your salary or income is transferred in it. It is quite easy and efficient way to save money on a monthly basis.
8. Plan to grow your saving:
Another exciting way to save is to invest it in any rewarding plan which not only increases over the time but also gives you profits like shares, stock exchange or any reliable business. It is quite beneficial for your long-term financial stability and plans.