One guaranteed formula for financial success is to save money early on in life. The future surely brings a ton of uncertainties, but with adequate financial resources, you will be able to meet challenges with utmost confidence. But the activity of saving, is of course, easier said than done. With all the temptation surrounding us on a daily basis, saving becomes a tedious task to achieve. In fact, a large percentage of the population report that despite substantial income, many are still finding it very difficult to save money for their future. We all yearn to save some cash for the rainy days. The only problem is that most of us simply do not know where to begin or how to start such an activity.
This article aims to help you in finding ways on how to save money for your future. It is an undeniably hard task at first, but once you see the positive changes that it can provide, you will surely be motivated to increase your savings all the more!
Keep Track of Income and Expenses
Keeping a close eye on your spending will enable you to realize how good or bad you are with your manner of spending. Carefully assess where your money is actually going. Divide your spending between needs and wants. Of course, you will need to cut down on your spending, especially if it exceeds your total income. The most effective way of cutting down on your expenses is by reducing the amount of cash that you spend on ‘wants’ or luxuries. There are things that you can actually live without buying at present. Keep track of your spending and make sure to list any form of financial transaction that you make on a daily basis. After a month of careful listing, it will be easier for you to identify the source of your money problems.
Breakdown Everything by the Hour
In order for you to realize the value of money, it may be ideal for you to measure it in terms of the number of working hours that you need to put on to buy a product or service. If you are looking into buying a $50 shirt, this translates to up to 10 hours of work. With this, you will be able to appreciate your income all the more, thus making you more likely to save it than spend on unnecessary purchases.
Make an Organized List before Shopping
Stick with the list that you have made for yourself. Only list down the things that you really need to purchase immediately. You may be tempted to pick up things not listed on your shopping list, but you must have the discipline to go through the entire store without any impulsive purchase in tow. This will be very difficult at first, but once you get used to making a list when shopping, you will get right past all the temptations in the long run.
Bring your Own Lunch
Sure, it is easier and more convenient to eat lunch out, but bringing food is just as equally satisfying too, especially when you realize that you are saving a ton of money in the process.
Keep your Purchases Online
Buying products and obtaining services online are undeniably more practical if your goal is to save money. Aside from the convenience that online shopping offers, websites have made it possible for consumers to buy things they need at discounted prices. The presence of promo codes or coupon codes online has also made the shopping experience more exciting and fun for consumers too. A lot of retail companies online offer perks such as freebies and free shipping service, thus adding more value to the entire online shopping experience.
Limit your Spending Ability
By this we mean, take a small amount of cash with you when you go out. Whether you are going out to shop at the grocery store or eat out with friends, just bring enough money to let you enjoy the activity but not too much. In addition, never bring your credit card, especially if will be out for an extended period of time such as vacation trips and night out with friends. The last thing that you want to do is use your cards while being under the influence, and seeing your bill a few weeks with purchases that you cannot even remember at all.
Pay Off your Credit Card Debt
One of the most important rules in financial planning is that of clearing your most expensive debts first. In order for you to successfully grow savings, it is imperative any outstanding debt that you have under your name. In this way, you will be focused on the process of saving, and allocating a small portion towards your basic necessities, and the rest will go to your savings fund.
Consider Purchasing Bundled-Up Products and Services
The highly competitive market has pushed companies to offer their services in affordable bundled packages. For instance, phone companies that offer cable services offer packages that included both services at very low prices. Instead of paying for these services separately, a great way to save money is to get them from one company instead.
In the case of cellular phone packages, pick a plan that features the amount of minutes and text messages that you need. Never exceed what you can utilize in a month as this may negate your efforts of saving money altogether.
Place your Money in Investments you Understand
Only buy what you know. It may be exciting to venture into the unknown, but when it comes to investing your hard earned money, you may want to stick with the basics at first. If you have already built a substantial amount of savings under your name, one way of making it grow further is through investment. If you have concrete understanding of how buying and selling of stocks work, it may be best to dive into this form of investment. However, if you are unfamiliar with such concept, it may be best to keep your money in the bank, while you learn about the different types of investment opportunities first.