How to Save Money: 10 Tips to Boost Your Wealth


How to save Money? That’s a question we all ask occasionally. Certainly it’s one to ask if achieving financial freedom is your aim.

Do you have problems saving money?  Does your salary disappear long before your next pay day? Do you experience 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. Start your financial education right now and buy yourself a couple of decent reference books. And read then, frequently.

If you found this article useful then please share it on social media with your friends.

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© Roy J Sutton and Mann Island Media Limited 2018. All Rights Reserved.

Wealth Creation Strategies

Here is Brian Tracy with some advice on what he sees as the top wealth creation strategies for financial success. Brian is another of my favourite motivational speakers. His messages are simple yet very effective. If you can spare the time, Brian Trace is always worth a listen.

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

What’s the difference between saving and investing?

What’s the difference between saving and investing? A friend recently asked me this question and I thought it was interesting because most people appear to view these terms as two words for the same activity. However this is definitely not the case.

Savings:

Essentially saving is the money you manage to retain from your earnings each month, which you then keep in the bank on deposit. Either this money is surplus to your needs or it is a sum which you have proactively taken from your earnings at the beginning of each month in order to ensure that over time you can begin to build a significant capital sum. If you’re adopting such a proactive approach to saving then give yourself a pat on the back. However, even when money is on deposit, you should be seeking the best interest rate you can find.

Investing:

If you are saving regularly then over time you will start to build a significant sum of money and that’s when you can start thinking about investment. The point of investing is to enhance your wealth; to turbo-charge it if you like. To ensure that your hard earned money works for you and grows over time such that it keeps pace with inflation and attains a high enough rate of return to provide you with some capital growth.

Conclusion:

Investment is a serious approach to managing your wealth, spreading risk and diversifying over various asset classes. Being a saver is good; being an investor is even better.

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

Dealing with debt and curbing your overspending

Do you struggle when dealing with debt? Perhaps you’re looking for ways to curb your overspending. Certainly the burden of debt can be stressful. Surely life would be easier if you could find a way to reduce your debt burden? The problem is where do you start?

If you’re serious about dealing with debt then a good start point is to take a close look at what you’re spending. There are things you must have like a roof over your head, heating and light, and food on the table. Then there are those things you buy that you really could live without. Even for things you must have you can often overspend on these items in you’re not careful.

It is a fact that overspending is one of the main reasons why people get themselves into debt. You’re in the shopping mall or on the internet and you see something that is so tempting and you can’t help yourself. Buying is so easy with your credit card and so you do without considering whether you really need it or whether you can truly afford it.

Well that’s a habit you must change if ever want to be in control of your money and your life. Yes, it is a hard habit to break if it’s been part of the way you live your life for so long. That’s understandable but it’s not impossible. It can be done and it’s an important step on the road to dealing with debt.

So here are a few simple steps to help you to stop spending, start saving and live a life geared toward achieving financial freedom.

1. Admit you have a problem

The first step to curb your overspending habit is to admit that you have a problem. You can’t eliminate a problem until you recognize you have one.

Once you admit to yourself that you have a problem then you need to understand where your money is going. Unless you make a point of identifying where your money is going then it will simply disappear without you knowing where it’s gone.

Keep a journal to record your spending on a daily basis to keep track of everything you spend. Write it down and at the end of each week review what you’ve spent and where your money has gone. You might find that this is a real eye–opener for you.

With this approach you will be able to see what you’re spending on stuff that may not be absolutely necessary. Then it will be easier to develop a clear and concise spending plan whereby you start living within our means. Having a plan can then be the basis by which you start developing the self-discipline to allow you to break your overspending habit.

2. Make financial goals

In developing your spending plan you must also set some realistic financial goals for you and, assuming you have one, your family.

One goal should be to ‘pay yourself first’. What does this mean? It means as soon as you get paid you set a small proportion of your income aside immediately. You could set aside say 10% of your income. That can be used to reduce your debt burden initially and later, when your situation has improved, for savings each month.

By setting money aside when you get paid, it’s a bit like taxes and other deductions against you pay. They all get taken off and you get used to living on what’s left. Putting something aside is an important part of any personal financial spending plan.

Keep your financial goals in mind each and every time you’re tempted to make an impulse purchase or overspend on something you can live without. This will encourage you to make better spending decisions.

And when you’ve reached one of your financial goals, don’t forget to give yourself a little reward. Don’t go overboard of course but achieving a goal will make the reward all the sweeter and it will encourage you in the development of good money habits.

3. Cut up your credit cards

Credit cards can be a convenient medium for making payments but they can also be weapons of mass wealth destruction. When you have a serious debt problem don’t take a credit card out shopping.

Yes, they are a big part of today’s culture and it is might seem hard to imagine life without one. However studies have shown that people spend a larger amount when using a credit card because it doesn’t register with them that they are spending real money. And that’s why they are dangerous.

Essentially using a credit card is simply postponing the inevitable. It is actually real money and eventually the bill for your purchases will have to be paid.

So take the impulse out of shopping and start planning for purchases ahead of time by saving up the cash. You will be surprised at how much you save by not using plastic.

4. Seek out support

When you’re trying to break a habit, it is important to surround yourself with good people who will encourage you and steer you in the right direction when you’re tempted.

That means when you’re going shopping make sure you take someone with you who’s not afraid to remind you that you don’t need whatever it is you’re thinking of buying. Someone you trust who will be your conscience, if you like. Someone who knows your aims and will help you achieve them.

If there is someone who will hold you accountable for your actions, who forces you to recognize your bad habits then this will make your financial goals much easier to accomplish.

5. Take up a hobby

Our shopping habits often stem from the fact that we are simply bored. This is particularly true with shopping online. You’re sitting at home bored so you pick up your iPad or similar tablet and start browsing. Sites like Amazon are very good at closing a sale once they’ve got you. It’s all so tempting. And we’re all guilty of impulse shopping on the internet, at least to some degree.

So next time you’re bored, find something else to do. You could take a walk, go to the gym for some exercise, watch a film, read a book, you could set up a blog and share your thoughts with the world or perhaps just volunteer to help a charity. There are plenty of other possibilities, so just do something other than shopping that appeals to you.

In short, take up a hobby or two and keep your money in the bank.

Conclusion

This is not an exhaustive list but these few tips should help you to curb your overspending and develop better habits with money. If you change your ways you can start winning with money.

Don’t try to ‘boil the ocean’ just take small steps on a daily basis and this will help you kick your impulsive shopping habits. You need to start thinking about where your money is going and where you’d like it to be.

Start today and you’ll be a smart shopper in no time. With a little self-discipline you can go from being a complete spendthrift to becoming a super-saver quicker than you ever thought possible. Become a super-saver and one day you will achieve financial freedom. Achieve that and your life will be a lot sweeter and a lot less stressful.

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

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