How to save money


Having problems saving money?  Does your salary disappear long before your next pay day? Too much month at the end of the money? Certainly it’s a good idea to put some of your money away each month in order to build a capital sum for the future.

However that’s easier said than done I can hear you say. How can anyone save money nowadays? That’s a question most people ask frequently.

It isn’t easy but it can be done and it requires determination and financial discipline.  Some people do it, so why not you?

Working for someone else is unlikely to make you rich but, if you have an income, it can provide you with the basis for building wealth. It’s not necessarily about becoming rich. It’s simply about building a capital sum over time which might make your life easier when you’re in need of a large sum of money in the future. That might be to purchase a property when you’re getting married or perhaps when you decide it’s time to retire.

The key thing is to start as early as you possibly can. The earlier you start the more you will benefit from the magic of the compounding effect.

So here are 10 tips to help you start saving your money:-

Tip 1: Pay Yourself First

Each month when you get paid take a percentage of your income, say 10% or whatever is reasonable, and put it away somewhere safe. It will be a bit like tax and other stoppages. Once it’s gone, you get used to managing on what you have left. If it goes at the beginning of the month it’s gone and it’s safe.

Do this each and every month and over time your savings will start to grow faster than you think.

Tip 2: Don’t let expenditure exceed income

Money comes into your hands and then money goes out. You have to make sure that you don’t spend more than you earn. And don’t spend money on stuff you don’t need and probably won’t use.

Tip 3: Make a Budget

Create a budget to cover your basic expenses plus your discretionary expenditure. Limit your discretionary expenditure and stick strictly to your budget. Manage your money properly and you should have something left at the end of the month.

Tip 4: Reduce your expenditure

How often do you buy that expensive coffee on the way to work? Cut out the coffee from Starbucks and the saving over a year can be substantial. If you buy expensive sandwiches from the Deli at lunchtime then you could make another saving by making your own sandwich and taking it to the office with you. ‘Brown bag’ as the Americans say, and that saves money. Again over time the savings will add up.

Tip 5: Ditch the Credit Card

Credit cards can be a convenient means for paying. However they can also be weapons of mass wealth destruction. For a start research studies have shown that people who use their credit cards as a means of payment for every purchase tend to spend more money than people who use cash on average.

Similarly with a credit card it is so easy to spend money you don’t have on things you don’t need both in shops and online.

And if can’t settle you credit card bill in full at the end of the month you’re left with debt and interest payments at extortionate rates. That debt can easily grow to levels which then become difficult to control.

Ditch that credit card and you’ll probably save a lot of money over time.

Tip 6: Downgrade your accommodation

Could you live in a flat or apartment rather than a house? If you live in a big house could you live in a smaller one?

Your lifestyle choices can prove to be expensive. If you want to reduce your expenses then downgrading your accommodation is one way of doing it.

Even a small downgrade can produce a saving which could help in your goal of building a capital sum.

Tip 7: Live without a car.

In some ways life can be easier when you’re mobile. However it comes at a significant cost.

In addition to the capital cost of the car, there is depreciation over time plus the cost of fuel, insurance, maintenance, parking and wear and tear.

The cost of motoring can be high indeed. If you could make do with public transport then you can save a lot of money.

Tip 8: Use Discounts Coupons and Codes

We’re frequently given discount coupons and discount codes but how often do we make full use of them?

Such savings individually may not seem like much but the cumulative effect of this approach can save you a lot of money over time. Never be embarrassed to used discount coupons and codes. Take every opportunity to make savings on your purchases.

Tip 9: Spend Your Money Wisely

How often do we spend our money on stupid stuff? Things we don’t need and/or will never use. Before you buy ask yourself, “Do I really need this item?” and “Will I actually use it?” If your answers are in the negative, or even just probably negative, then don’t waste your money. Save it instead.

Tip 10: Take advantage of tax breaks

Take every opportunity to benefit from tax breaks. Tax evasion is illegal of course but when there is a genuine and honest opportunity to save tax then you should always take advantage of it.

Overall this list of ten tips is by no means comprehensive but these tips will help you save if you are disciplined in your approach to managing your money. So what are you waiting for? Get serious about saving your money now.

If you want to improve your knowledge on how to save money, there are some great books on the subject and one I can recommend is The Money Diet by popular TV presenter and UK-based financial journalist, Martin Lewis. Buy it now from Amazon.

© Roy J Sutton and Mann Island Media Limited 2017. All Rights Reserved.


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