I WANT to go back to basics today and talk about simple ways to save money. This feature is for young professionals, young couples or even teenagers who are money-conscious. Clip or share this column and share it with your loved ones who might need a little push toward the direction of frugality. Moreover, Christmas is only about half-a-year away and it will be wise to start saving up today.
We’ve all come across so many tips on how to save money: create a budget, record your expenses, bring your own food to work/school, etc. Allow me to share some concrete tips that might increase the chances of actually putting aside some money on a regular basis. First of all, make savings a part of your regular expense. Every month, you pay for rent, electricity, groceries, water and food. Treat savings the same way.
Experts say that if you cannot put away at least 10 percent to 15 percent of your regular income, then it means you are living above your means. Review your expenses and really cut back on some of them. A 40-percent savings from your regular income would be a better figure to aim for. See if you can reduce your expenses to be able to do this.
Another helpful trick is to set goals: trip to Europe, down payment for a new car or a farm, your retirement fund, your Christmas money, etc. Figure out how long it would take for you to reach your savings goal, and then see how much you should be putting away on a regular basis. Money for long-term goals may be placed in an investment plan—there are plenty of options in the market.
It might also help to automate savings; talk to your bank about automated transfers between bank accounts. For example, if your salary goes to Bank Account A, you can have a certain percentage transferred regularly to your Bank Account B. What you have in this second account needs to be “forgotten” so you are not tempted to spend it.
On the practical side, you can spend a weekend decluttering your space and taking photos of items you don’t want anymore. Post these online and sell them via an online garage sale, then put the proceeds into your savings account.
Another interesting way to save money is by doing things yourself: baking your own bread, doing your nails, making your own latte, cleaning your car, doing your laundry, fixing broken things in the house and many other do-it-yourself activities that you could learn. It’s hitting three birds with one stone: you don’t only get to save money, you also learn new skills and actually get to move around more.
If you say you are unable to save money because you need to regularly send money to relatives or family, then it’s time you look at your budget and see how you can adjust your expenses so that you can keep sending cash while setting aside some money for your savings account, too.
You see, saving for the rainy days is a nonnegotiable aspect of our financial life planning. The sooner you figure out how to do it effectively, the better it will be for yourself and your loved ones, too.