Edited by aianne b., Innocent Yogo, Trafalgar Law, Ermin and 4 others
Saving money is very important for rainy days. There will be times that credit card bills, electric bills, and other bills and costs arrive on the same day and you have to pay all of them before the due date. If you did not save money, you would be in debt to pay all your bills. This is the big problem. When you borrow money from someone you know, or from a bank, you have the responsibility to pay it back before or on due date. What if you do not have money on the due date? From whom will you borrow money AGAIN? You are just making a debt cycle without an end.
If you save a lot of money, you can pay your bills anytime and pay money back to someone who lent you money. If you see something at a shopping mall and want to buy it right away, you can because you have money in your savings. If you don't, you will only stare at it and wish you had saved a lot of money. If you do not know how to save money, below are some helpful tips that you may want to follow:
Helpful Tips on Saving Money:
- 1Have a mindset for saving money. You can take your future as an reason to save money. You do not know what you future will be, if you will have a stable job or not. Whatever your future will be, you will be assured of security if you have invested money in your savings.Advertisement
- 2Do not buy things that are not important. Most people buy a lot of things that they do not actually use. Cut down on shopping for useless things, if you do not need them. If you have a dozen lipsticks, then do not add another dozen to it. You are not going to use all of them anyway, and they will just expire after a few years. If you just got yourself a phone earlier this year, but a new and better phone is coming, try not to give in to your hunger for new gadgets. Do not buy something just because other people think they are cool; do not get a new car just because your friend got a new ride.Advertisement
- 3Save money even if you are working or have a business. Having a business and a stable job does not mean you do not have to save money. No! You have to save a lot of money, especially if you have a job or a business, because there are times that bankruptcy and other misfortunes will come at an unexpected time.
- 4Follow the right formula for saving money. Many people use "Earnings - Spending = Savings" this is wrong. It should be "Earnings - Saving = Spending". This means that you will save a certain amount of everything that you earn, and only spend money on things that are important. If you use the formula, "Earnings - Spending = Savings", you will only save a little amount of money, because the rest has been used for other, sometimes useless, things. That is why you must first allocate more than a half of your income to your savings, and spend the remaining money as your working budget.
- 5Do not be afraid to invest. Invest in health-care and you will have more savings than you think. Early checkups and preventive health measures will result in savings if you find problems and are able to treat them early, rather than finding something wrong with your health too late.
- 6Withdraw money from your savings, if you really need it. DO not feel guilty when you take some money from your savings, but make sure that this money will be spent wisely, such as for buying groceries and medications.
- 7Use your savings account properly. That is why many banks offer savings account for their customers, so that they can invest a little money to their savings every payout. If you have a savings account and this is where you will receive your salary, you will tend to withdraw all in there on payday. Separate your savings and your budget money in different accounts. Or, you can transfer funds from your current account to another savings account online. This way, you will be able to save money without being tempted to withdraw it when you are at the ATM.
- 8Budget your weekly expenses. How much money do you have to spend every week? Do you have to go shopping for clothes every week? Of course not. Budget your money for buying groceries every week and this will help you save a lot of money. Buy only the things you need for your home. If you want to go shopping for clothes, bags, and shoes, do it once a month.
More Tips, Tricks & Warnings:
- Read more articles about finance and savings.
- You can also attend seminars that discuss how to handle your finances.
- You can also take some short term financial courses in college. This will help you manage finance properly.
- Educational expenses are rising every year, so you should save a lot of money for your children's future, if you have children.
- If you retire early, you will likely need savings or investments to take the place of your income, which you will no longer receive from your last job.