Some Money Saving Tips

It is the money you save but not the money you earned. As far it is concerned one must know how to budget money. If someone is earning a big amount of money, but he spends it too much on something that it is not needed. Like for example, after payday, he plan to go to department store to buy the latest watch, phones, or high tech gadget instead of going to bank. Be sure to have deposit slip all the time and as much as possible and deposit your salary just left allowance for the month so that you are not tempted to buy something.

• Live a simple life. Some people think that living simply means living in misery. Living simply doesn’t mean living in deprivation. It doesn’t mean eating only two meals a day, cutting off electricity bill at home or making do with candles and charcoal. It is just cutting back on the other items that don’t appear in our top values such as clothes, accessories, appliances and gadget.

• Budget your money. Track your all spending. Before you’re leaving in work, you can keep a small notebook where you can jot down expenses every time you purchase something. Each new day should have own page. This notebook will serve as diagnosis of all your expenses and use as your analysis because you can trace where your money goes. At the end of each month, check your notebook and make a spreadsheet. Create categories: Foods, House Maintenance, Medical, Clothing, Tuition, Etc. After 2 to 3 months, you can now create a “spending plan” based on your diagnosis. One guy realized that he can save up to $1,500 each month if he gave up his after office snack before returning home and went straight home and feed himself in their kitchen.
  

• Make Irregular Expenses Account. There are expenses that don’t come each month such as tuition fees, maintenance expenses (appliances repair), insurance, etc. Part of your budgeting knows out what these irregular expenses in your life and how much they cost in total each year. Divide this figure by twelve, and that’s why what you should set aside in another account called “Irregular Expense”. This is not your saving account.

• Pay all your debts first. Before starting a saving account, pay off all your debts because you are paying more interest on your loans than earning interest from your savings. Savings account can give you an average 3% monthly interest and time deposit can give up to 8% while credit card loans can go up to 24% a year so it is better to put your savings into paying your debts. You can list down all your debts from those with the highest interests down to the lowest ones. If you are paying off credit card loans, shop for credit cards that charge lower interests and transfer loans there. Make a payment scheme plan and calculate when you will reach zero debt and have stick to your plan.

• Never buy things on credit. Do you have something you want to buy right now and are tempted to buy on credit? Don’t and save up for it every month. If you something you want, save for it and buy it later. We should always live below our earning capacity.
  

• Stop impressing others. When you are too busy impressing others, paying your bills or debts, or protecting your properties, it makes your life complicated. Are you comparing yourself with your richer neighbors and friends? Don’t try to appear wealthy.

• Invest wisely. Never get into something you don’t understand. Some people lost their whole life savings and retirement money fund because they got into things they didn’t understand. Also, never put your life savings into high-risk investments. If the firm crashes, you were ready for it and thankful it wasn’t life savings you put into it.

• Eat more vegetables. Decrease intake of junk food like candy, potato chips, sodas, soft drinks, fatty foods, etc. By simplifying your eating habits, you could save up to $25 a week, $100 a month.

• Give up expensive habits. Imagine what you will save if you give up your smoking habits, buying lotto tickets, eating extra sweet snack and junk foods.
  

• Sell unused assets. You can sell all the clutter in your home – stuff that you no longer use. These stuffs can be converted into cash.

• Hold on to unexpected cash. Example of this unexpected cash is your yearly bonus or reimbursement from your office. You could keep this unexpected cash to your savings account not in your wallet because all your wallets have invisible holes.
  

Due to economic crisis today, I decided to post here a money saving tips. I hope that these tips will help you. If you have suggestions, don’t hesitate to share. Thanks!