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Tips to Save Money

Most people nowadays, especially the younger generations are using the millennial term “YOLO” which means “You Only Live Once”. It simply means that you should live your life to the fullest and enjoy every minute of it.  This is a good philosophy but it should still be in moderation. However, some people took it to the extreme and only living their lives for the present. It seems like they forgot to prepare for their futures.

Most of the younger generations these days simply focus on purchasing the things that they want and doing what they like. They are so absorbed on buying the latest gadgets, bags, clothes, shoes, jewelry, accessories, or traveling to different places that they forgot to save for their future. Most of the millennials don’t save money for their future house, creating their own family, preparing to have their own children, and have the best retirement days.

Nevertheless, it’s still not too late to start saving for your future. For people who are not used with saving, starting will be the hardest part. You need to allot a certain amount from your salary and save it in a bank account or a piggy bank. From then, you need to be consistent with your saving. Once it becomes a habit then it will be easier to do. Here are some tips that you can do to save money:

  • Record your expenses

To know how much money you spend monthly, you need to list down all of your expenses. Aside from your monthly bills, it should also include your groceries, snack, coffee, shopping, and everything else that you pay for.

  • Needs versus wants

After listing your expenses, you have to prioritize the things that you actually need in your daily life. Note the expenses that you actually need to pay for like your food, fare, rent, electricity, water, internet, and phone services. Remove the luxury items in your “To Buy” list like new clothes, shoes, or phone since you still have these things.

  • Set saving goals

budget plan

From time to time, it is not bad to reward yourself but you also need to save it and not impulsively spend your money. However, you need to set aside an emergency fund first before anything else. Then, you can save up for a new car, phone, or vacation trip.

  • Learn to prioritize

Just because there is a new smartphone in the market or there is an on-going sale event in the malls doesn’t mean that you should join the hype and spend money on it. You need to make sure first that you have a budget for your monthly expenses like rent, electricity, water, phone, and groceries.

  • Automatic savings transfer

For those who haven’t started or just starting to save, it will be challenging to start and maintain this practice. To make it easier, you can choose to do an automated transfer from your checking to savings account. With the help of this strategy, it will help prevent you from breaking your budget.

  • Occasionally check your savings

If you are having troubles with saving, you should check your plans and methods so you can easily identify the problems. Furthermore, it can motivate you whenever you see that there is progress in your saving plans.

  • Make a budget

saving-money

It is not bad to reward yourself from time-to-time. However, you should also make a budget for it. For example, you can set aside a bit of money for your shopping trip so that when there are sale events and promo then you can buy the things that you want.

  • Reduce your expenses

Aside from saving money, it will also greatly help your budgeting plans if you will reduce your expenses. You can start by conserving energy and water, searching for cheaper apartments or house, eating affordable but healthy meals, and low-priced modes of transportations.

  • Avoid debts

If you can’t afford it then don’t use credit cards to buy it. Using credit cards for your expenses means that you don’t have enough resources to buy the things that you want. Don’t let companies sway you with their advertisements and commercials by letting you think that their products and/or services are essential.

  • Savings accounts and investments

There are several kinds of savings that you can choose from: regular savings account, money market, certificate of deposit, and automatic savings plan. Savings is best for your short-term goals. However, if you are planning for the future as for your retirement, the best option will be an investment in stocks and mutual funds.

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