There is no point in earning a lot of money if you are not doing the favour to yourself of saving a part of the money you earn each month. Knowing how to save more money can put you in a healthy financial position in the long run. A simple decision today can leave you at a much more comfortable position tomorrow, financially. Be smart, start early, start today with these simple ways to save more money.
1. Pay yourself first
Before you start to spend any of the money from your paycheck it is important to save a portion of the money first. This portion of money can be any amount that you prefer, you can start with 10% of your paycheck for starters.
This decision needs to be taken first since you might not be left with any money if you decide to pay yourself later after you have paid your rent or bills. You can also opt for an automatic transfer of money from your salary or current account to your savings account so that you do not have to think. If you are getting a high-interest on the savings then it is even better.
2. Partner control
Let’s say you stay with your partner and your partner make better financial decisions than you. It is a good idea to give your partner control of your savings.
What if you do not have a partner? And you are really bad at making financial decisions and always end up spending your savings. Well, you can always take help from any of your family members since they are more experienced financially and they are the reason you are here today.
3. Cut expenses
Also, a great way to save more money is to reduce spending money unnecessarily and cut down on expenses wherever it is possible. This means you have to make decisions and set your priorities on where you want to spend your money.
Some simple ways that you can start today are avoid eating outside as much a possible, it is both a healthy choice to make plus you end up saving a lot of money. Remove luxury from your list till you have reached your set goal of why you are saving? Save energy at home by being conscious of your electricity spending. Reduce your travel to minimum and cycle or walk whenever possible.
4. Record expenses
It is a good habit to maintain a journal where you can write down your savings on a daily basis. You are keeping track of where your money is being spent and where you can cut down your expenses.
5. Make a budget
Lastly, making a budget is essential in keeping an overall track of your finances and will help you save more money. Make a note of the major chunks of money that will be gone from your paycheck so that you can adjust your spendings to meet your set saving goals for the month. Also, it is a good idea to add the money you save each month as an expense in your budget.
Image Source: https://in.pinterest.com/pin/512917845038526377/