7 Easy Methods To Saving Money
Saving money has never been so easy, especially thanks to the internet.
Really, what I’ve found to be the hardest thing regarding saving money is simply how to start.
It can really be difficult to come up with simple-ways to save your money and how to use your savings in pursuing your financial goals.
Lack of these critical ways to help you save your money, will make you end up spending all your money without depositing even a penny in your savings account.
However, this step by step guide to money saving ways will help you formulate a realistic saving plan.
Record Your Expenses
The initial step to saving your money is getting in track what you spend.
Track all your expenses ranging from newspaper, coffee, snacks among others.
Basically, you can account for every penny spent.
Once the data is ready, organize the numbers in various categories such as groceries, gas; mortgage the do a total of each amount.
You can opt to use your bank statement or credit card to help you with the details.
If you do your banking online, you may easily filter your statement and then breakdown you’re spending.
Make a Budget
Once you’ve an idea on what you spend every month, it’s easy to start organizing your recorded expenses in a workable budget.
Your budget should give an outline of how your expenses measure-up to your income.
This will help you to plan how to spend and limit overspending.
Additional to your monthly expenses, make sure you factor in regular expenses which do not occur monthly such as car maintenance.
Eliminate your Debt
If you are trying saving your money through budgeting while having a huge debt, clear debt first.
Not yet convinced? Sum up how much you spend servicing your debt monthly and you will get the real picture.
Once you are done with paying interest on your debt, you can easily put that money into savings.
A personal line of credit is only one option for consolidating-debt so you can better pay-it-of.
Take a look at some financial goal apps that can help with this process as well.
Set Savings Goal
Setting your savings goal is one of the genius ways you can adapt to save money.
To get more motivation, set your saving target with a timeline to ease saving.
Depending on what you want to buy, for example you want to buy a house in three years with 20 percent down-payment; you can set a target to know how much money you should be saving monthly to achieve your targeted goal.
Buy Discount Gift Cards
Another and very unique way of saving money is to buy gift cards.
Buying discount card online saves you more money and it’s very convenient.
You may think the only legit and convenient way to buy gift card is buying it from a grocery store but the reality is contrary to that.
It’s possible to save hundreds dollars when you buy your gift cards online after replenishing your Starbucks, Amazon or iTunes balances in every month.
Nowadays, almost all banks offer an automated money transfer from your checking account to your savings account.
You can approach your bank and choose when, how much as well as where to transfer your money to, or you can even split your direct-deposit between your savings and checking account.
Automated transfer is unique and great money to save your money since you don’t need to think about it and it eliminates those temptations of spending the money instead of saving.
Here are a few apps that can help with saving money.
Spend Less Than You Earn
This is the holy grail of personal finance.
If it will be impossible to utilize this secret, then saving your money will be impossible.
You are supposed to spend less money than you earn.
If you spend more than your earnings, you will end up borrowing to sustain your needs until you get your earnings.
This borrowed money usually comes with interest thus making it hard to save since your next earnings will first pay the debts.
But if you formulate better spending techniques that will see you spending less, you will definitely save more money.
The above-discussed techniques are genius ways to save your money.
Keeping track of your expenses, budgeting, automating savings, buying discount gift cards just to name few, can save you hundreds of dollars within a given time.
So as you formulate ways to save money, give these technique priorities and you will make it.
Saving money is not a simple task as many people are used to spending all their earnings without saving even in a penny.
It’s a great time now to take a bold step and start saving your money through the above-discussed ways.