I have been saving money, both for the long and short term, including for emergencies where I don't need to be stranded or crying about where to get money because, at this time, everyone is looking for ways to get more money to solve their needs and going to them might be a disappointment to you when they turn you down. Seriously, I don't like adding more problems to people or disturbing them and so, I was wise to start saving some months ago through some simple steps and it is easier for me to withdraw whenever I need it.
I have once been dealt with when I needed money and I regretted not saving when I should have.
One thing you should hold onto your left palm is that saving is easier when you have plans for it. Sometimes, saving money is always hard at the start but when you are in it, it becomes easier and fun when you realize you can easily be saved when you already have a backup somewhere and not been stuck on the way. In fact, it makes you responsible.
If you really want to keep saving or are about to start your journey because I believe it is never too late for anything except if you decide you are not ever going to try it. Then, follow these steps of mine because it is what I have done, doing and will continue to do.
In simple and clear terms, expenses are the outflow of cash in exchange for goods and services. This means one has to engage in a business or have a source of income where one earn some cash. In our daily lives, we would always have expenses, what we use our money for, either getting groceries, cleaning up our cars, fixing some parts of the home, attending parties etc.
The first step to saving money is figuring out or recognizing how much you spend. Track your expenses, that is, the coffee, monthly bills, tips, household items and so on. Get a piece of paper and pen, or a spreadsheet to record your expenses. I have an app called Money Manager that makes it easier for me to keep track of all I spend my money on and in recording daily expenses.
Now that you have an idea of how much you spend in a month, the next thing is creating a budget for your expenses. Your budget should show what your expenses are, which must relate to your income so that you can plan your spending and limit excessive spending. Be sure to include expenses that occur regularly, but not every month, such as car maintenance. Then you include savings in your budget with a percentage which feels comfortable and convenient for you. This should surely be a goal you are always aiming at every month and stick by it. Also, as you keep saving, plan on increasing the percentage which must be deducted from your income.
Perhaps, you might not be saving as much as you´d like, but you should be ready to identify non-essentials such as going out to eat and entertainment that you can spend less on. Search for more ways to save on your fixed monthly expenses such as a cell phone plan.
There are some ideas I used to trim my expenses which are cancelling monthly subscriptions and memberships that I don't use, especially the ones that renew automatically. Then, I examine the cost of eating out versus cooking at home. This is why I prefer cooking my meals to cut out my spending on eating out and once in a while, I go out to eat.
This is also important to look into — wait before you buy anything. When you are tempted to purchase an item, wait a few more days to think and decide if what you are getting is actually what you want or need. This will help you to save for it.
I love to set goals for my savings because I have found out that it is the best way to achieve your savings plan quickly. Start by thinking about what you might want to save for, both the short and long term. Are you looking to get a brand new car? You should create a saving for that and add "A brand new car savings" This, is just an example though. Now after doing that, estimate how much it cost and how long it will take you to achieve it.
This is one way to make you consistent in your savings. Choose when, how and where you want to transfer your savings. You can even split your direct deposit so that a portion of what you received will go directly into your savings account.
The beautiful part is watching how your savings grow by reviewing your budget and checking your progress every month. When I do this, I know I am on track and seeing my savings grow means I am focused and consistent with it. Remember a little drop of water every day, week or month will turn into an ocean someday. When you understand how to save money, it may also inspire you to find more ways to save and hit your goal faster.
Thanks for your time on my blog.
