WITH the price of day-to-day living increasing at a rapid rate and salary increases not keeping up, saving becomes almost impossible.
The hardest thing about saving money is to get started and sticking to the plan.
Below is a list of simple ways to save ans slowly work towards achieving some of one’s goals.
Record expenses
The first step to saving money is to figure out how much one spends on a monthly basis.
Keep track of all expenses and account for every cent spent.
Once the data has been collected, organise the figures under categories, such as petrol, groceries and house bond, and total each amount.
Make a budget
Utilise that data to organise recorded expenses into a workable budget.
The budget should outline how expenses measure up to income to plan spending and limit overspending.
Include other expenses that do not occur regularly, such car maintenance.
Plan on saving money
Create a savings category within the budget.
Try to allocate 10 to 15% of income to savings.
If expenses are too high to save that much, then look where to cut back.
To do so, identify non-essentials that you can spend less on, such as entertainment and dining out.
Choose something to save for
One of the best ways to save money is to set a goal.
Start by thinking of what you might want to save for, then figure out how long it will take you to save for it.
Decide on your priorities
After expenses and income, the goals are likely to have the biggest impact on how you save money.
Be sure to remember long-term goals.
Prioritising goals gives one a clear idea of where to start saving.
Make saving automatic
All banks offer automated transfers between a check and savings accounts.
Choose when, how much and where to transfer money to, or even split a direct deposit between the check and savings accounts.
Automated transfers are a great way to save money as it generally reduces the temptation to spend the money.
Watch your savings grow
Check progress every month.
Not only will this help stick to the personal savings plan, but it also helps identify and fix problems quickly.
These simple ways to save money may even inspire you to save more and hit your goals faster.
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