Saving money is big problem for most people simply because we love spending every penny we earn. Let’s take a look at 5 tips that will allow you to save tons of money every month.
1. Know the purpose of saving
So the first, you should know exactly why you want to save in the first place. Alot of people give up and stop saving because they don’t see exactly why they are saving in the first place . Your goal shouldn’t be to save for a great house or a brand new car because once you get that car, you will go back to your previews position and still face those financial challenges again. So the ultimate goal should be to achieve the financial freedom.
2. Pay yourself first
Before even spending a single penny out of your income, put aside a percentage of it into your saving account (if you don’t have one, then gone make one). You are not allowed to spend this money under any circumstances, no matter what you are going through this money cannot be spent anywhere, but only can be invested. Considered is to be as part of your taxes, something that have to pay whether you like that or not.
3. Know your expenses
If you’re not a consistent saver, then it might really be difficult to start, especially in the first couple of month, when you realise that your savings aren’t growing as fast as you would want them to. So, instead know your expenses first. Spend the next 30 days writing down every transaction you make, so that by the end of the month, you have will a detail understanding of how exactly you spend your money and you can deduct your expanse in those areas that don’t have a big effect on your life.
Procrastination is bad but in this case it’s different. Usually we get excited when we want to buy something new right away even if it’s something we don’t really need, but overtime that excitement goes away. Its like when you buy that new phone, if the first couple of days, you might still be excited about it but then you know what happens, it just becomes normal. So why not get in the habit of waiting to buy things, especially expensive ones. You’ll still end up buying all the important things you need, but there will be plenty of times when you change your mind and hold onto your crash.
5. Use cash
Whenever you buy something, try to always use cash instead of a debit card, whether you’re ordering food in the restaurant or getting something from groceries. Handing over a 20 dollar bill is a lot harder than just swiping your credit card, simply because when you swipe your card, it feels like you are spending a lot less. Over time, you will become a more conscious spender and you’ll buy more of what you need and less of what you want.
WIDA HAMIDAH S
XII SCIENCE 6