There are so many reasons why you need to save money. It can be useful for your future, as it also teaches you on how to manage your spendings. If you think that it’s hard to save money, you’re right. It takes an absolute determination to keep that piggy bank full, and not breaking it when it’s not time. Fret not, for here are s few useful tips on how to save money.
Record and Budget
Recording your income and expenditures might sound very complicated, something that accountants would do on those huge money ledgers. You also probably think you’d have to master mathematical skills to do this. However, there are plenty of mobile applications that can help you record where your money goes. The application will do all the mathematics for you, so at the end of the day, you’ll know whether you’re spending more than you should.
After you have successfully recorded your money flow, you can automatically set up a budget in your head. If you’re spending too much, look at which expenditures you can cut down on. Maybe you can substitute that $20 manicure at the salon by getting a $10 do-it-yourself manicure kit instead.
Saving money, as we mentioned before, requires determination. And no commitment or motivation can come through without the right goals. Having an intent on why you should be saving money will drive you into the discipline, and once you’ve reached that goal, you’d be addicted to saving more money for an even bigger target.
For example, you’ve decided to go on a trip to a nearby tropical island. The price of the plane ticket is $120. So, you can save $30 per month, and in 4 months, you’ll be able to buy the ticket and go on your trip. Next, you’ll set a more challenging target, maybe a trip abroad this time.
Rethink Before Purchasing
We often go to the shopping area and get lured into shops, caressing the beautiful clothing and trying out fancy new gadgets. Before we know it, we look at the price tag and our mind goes “not bad!”. And without thinking twice, we’re at the cashier, ready to spend money on something we don’t really need. And by the end of the month, we wonder where all our money went.
This is a common scenario among those who aren’t used to saving money. The trick is to ask yourself “do I really need this?”every time you are tempted into buying something. And even when you have the answer, ask again. Really think about whether or not what you’re buying will be useful, in the long term. Must you really buy a new nail polish when the ones at home are rusting in the corner? Exactly.