Future is uncertain! No matter how wealthy you are, you never know what’s in store for you in the days to come! God forbid, if something went horribly wrong, you might end up being bankrupt! Sounds scary? Well, the idea is not to scare you or to make you feel nervous. The idea is to convey a very clear message to you, start savings! If you wish to lead a life which is free from creditors, with all the necessities of life available, it is imperative that you started making savings a priority.
As they say; easier said than done! It is one thing to plan for savings and an entirely different game to actually do it. It can be particularly difficult for those people who are looking for an excuse to spend money. However, as mentioned, in order to secure your future, you need to revisit your habits and bring necessary checks and balances.
Have you never thought of saving? Do you not have any idea whatsoever, as to how you can plan and make this a reality? Well, there is good news for you. There are tons of different ways which can help you start saving today. In the following section of this article, you will be offered a brief insight into some useful tips pertaining to making savings.
Making Savings – Few Useful Tips
Right at the outset, it needs to be mentioned that if you are someone who loves spending money, then you can find this to be a difficult thing to do. However, if you are just the opposite things can be a bit easier for you.
You need to know some simple steps. That’s the key. Here are a couple of tips, which you might find to be quite useful.
- Eliminate or Reduce your Debts: Are you planning to save money? Are you carrying a significant amount of debt? Well, in that case, you need to make sure that your debt is being taken care of! One of the most effective ways to go about it, is by adding how much debt you pay every month. Try and get rid of them as quickly as possible. If required, get rid of your chronic habits and unnecessary luxuries. Once you got rid of debt, you would be surprised to see the amount of money you can save, which otherwise had to be paid to principle and interest!
- Set Goals for Savings: This is one very important aspect which needs to be taken care of, if you are planning to save. One of the best ways to go about it is by visualizing what you are saving for. If you need something to drive you, in that case, you can set targets based on timelines. This would make things easier for you. For instance, lets say you are planning to buy a house in 5 years time, with a down payment of 30%. Now that you have the target in mind, you can easily start saving to accomplish your target within the set deadline.
- Penny Penny makes Many: You must have heard of this age old proverb! It is as effective as it used to be! Try and save small amounts on a daily basis. Get back to your piggy bank days. Promise to yourself that whatever it takes, you would deposit a certain amount on a daily basis. Don’t set an unrealistic target, else you might find yourself in a spot of bother trying to achieve it.
- Quit Smoking: Are you a smoker? How long have you been smoking? Has it ever crossed you mid that you have been literally smoking away money all this time! Quitting is right now! You have no idea the amount of money you can save if you gave up smoking. No matter how cheap the brand is you would be shocked to notice the wastage of money you have been doing for such a long period of time. Quitting smoking is one of the best ways to save cash and your health!
- Try “Staycation”: Have never come across this term? Well, it is a new addition to the list of English jargons! Simply put, it’s about enjoying your vacations at your home, back yard or somewhere close to your home; which does not demand heavy expense. Sounds a bit too much? Well, if you are planning to save money, you need to walk that extra mile! Avoiding tourists destination for a season or two, can help you save on the airline fees, hotel booking and various other kinds of miscellaneous expenses. The amount would be quite a significant one, at the end of the day. Make no mistake about it.
- You can Save by Spending: Sounds confusing? Well, you can give a call to your utility company and get an energy audit of your home done. This would give you a clear idea as to how much extra unit you are paying for your electricity bills, and what are the areas you can save on. If you ever tried it, you will find that you have ended up saving a very impressive amount of money.
- Interest-Bearing Account: Try and make sure that you keep a separate savings account or money market account for your cash (outside of your investments), which would pay you with interest on a monthly basis. Move excess funds to a mutual fund or a stock for long term savings.
These are a couple of tips which you can try. One thing is for sure. If you are determined to make savings, and you stick to your plans, you can certainly make it happen. To conclude, once again, you must be reminded of the old saying, “Penny Penny, makes Many. Keep this in mind. You don’t have to go beyond your capacity. All that you need to do is to curtail down the unnecessary costs; yes, smoking and drinking are included in the list! Also make sure that you have planned your strategy properly so that it can be executed.