Jun 27, 2018

“Saving is better than spending if you want to have a financially secure life”. We all know this relatively simple but significant fact, and yet, few of us follow this excellent principle. That is not to say we don’t ‘try’ to do so every now and again. We make the same vows of ‘never again’ after being in debt courtesy of our spendthrift lifestyle and start saving.  Before we know it, we are back on the slippery slope of an ever increasing debt cycle.

Here are a few tips on how to save money:

1.     Create an element of financial balance in your life

It is always important to save a certain portion of your earnings every month for the proverbial ‘rainy day.’ The amount may not be very large to begin with, but it must be saved with absolute consistency. Even if you manage to save up to only 15 percent of your total earning every month without using your original savings, then within a few years time you would have accrued a sizable amount that you may be able to invest for even  higher earnings.

2.     Do not pay off your debts with your savings

Now that you have made the decision to save at least 15 percent of your earnings, don’t throw away your hard earned savings by utilizing them to get rid of your debt burden. Rather, cut down on your entertainment and other frivolous expenses to not only pay off your payables but also make sure that you don’t go around incurring newer and bigger debts.   By effectively cutting down on your costs you would be able to live a relatively stress free life since you would always have more money in your account.

3.     ‘Money date’

 All relationships demand time and commitment and that goes for financial relationships too. Take time out to spend with your money at least once a month. During this time, check your budget, review your accounts and see how far you have accomplished your financial goals. If you are still too far away from them, than make a PIP (performanceimprovement plan) to figure out just where you are going wrong and what you have to do to get it right, and follow that plan in letter and spirit.

4.     Use lower interest rate credit cards

All credit cards have different interest rates, with many financial institutions charging more than others. Rather than blindly using only one credit card it would be prudent to shop around and find the credit card that offers the lowest interest rate.

5.     Plan your meals

The answer to the ubiquitous “What’s for dinner” has the potential to play havoc with your budget. If the answer to this seemingly innocuous question leaves you stumped then it is probable you would simply ‘order in’ and give your hard earned dollars to the delivery man. Apart from making a mess of your budget, this habit will also wreck your waist line. The simple answer is to plan your meals beforehand, at least a week in advance.  Not only will you save money in the long run but your body will thank you for it. 

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