With the news constantly reminding us about the financial downturn that is happening, its probably time to start making some savings for the future. It’s easy to spend but harder to save, but there are 5 secrets to saving money that will make saving simpler for everyone.
1) In life, it is always easier to head towards a goal – and this is true in saving. Setting goals is the first step, and be it an amount you want to earn, a date you want to save until or a goal you want to spend the money on, having a focus will help considerably.
2) It can also help to have a separate savings and checking account. This is because you have to switch the money to the savings account and you will be less inclined to withdraw from there. A separate savings account acts as an additional barrier to wasting your money. If you can manage your cash flow, getting access to your own money using a debit card instead of a credit card is beneficial. Have a look around and compare credit cards if you need to switch cards.
3) There is also great benefit in drawing a budget and sticking to it. If you have on paper how much money you are going to spend and carry that amount of money with you, it’ll be easy to stay on budget. It’s very easy to spend dollars on luxury items, so organise a budget and stick to it!
4) When saving money, you don’t need to go it alone. You may not want to ask your boss for a raise but there may be overtime available, or perhaps there are additional tasks you can do. Any extra money can be put directly into savings, helping you to save more quickly. It will also help to save money by getting the support from your spouse or partner. If you are both working towards the same goal, it’ll be easier to make the savings and you can share plans about the best ways to do it.
5) Lastly, if there are places where you know you spend money you don’t need to, stop going there! If you don’t need to visit the mall, avoid it as you might waste money on products you don’t need. If you follow these 5 simple rules, saving money will be so much easier than you have ever previously realised.