Are you finding it difficult to save, you are not alone. According to the recent studies from Singapore indicate that about 60% of 3000 employees only save a fifth, the minimum required for the retirement benefits. Most of the Singaporeans especially young people do not save due to the high cost of living and lack of financial knowledge. Financial discipline is very important in saving exercise.
Saving money is a troublesome task for everyone as it comprises a strong determination and control over expenses. On the other hand, changing a longtime habit is tough as well. But, saving money is not an impossible task when it becomes a goal. Making smart financial decisions is a process learned by trial and error, therefore, one just needs to set goals for managing finance and its result will be fruitful.
Here are some good habits to develop and save money:
Motivate yourself with a goal
Set a strict and realistic goal for a particular span and regularly review them. Cut out pictures of your goal and put it in foot traffic place which every time reminds about the goal. It is important to get a reminder for which purpose the goal is made as it helps to save money easily and stay on course.
Firstly pay yourself
By saving a portion of money before investing anywhere else gives self-training to keep control over the excess expenses. It also helps the goal setter to be in limit and manage according to the goal.
Track unnecessary expenses: One need to keep a check on unnecessary expenses as any kind of negligence will drag on the same track as it was earlier. Be strict on the goal and determine to not to spend extra. It will surely help to find out loopholes where your cash goes. Restrict those areas and save money efficiently.
Save spare change
Get a jar to implement this thought and put the spare change in a jar. It is not time taking, therefore, possible for everyone. Spare cash or change will make a difference at the end of the month. A heavy amount of spare money in the jar will motivate to proceed further towards the goal and achieve the target easily.
Avoid quick decision on an expensive purchase
Take time to think what to buy and when as any kind of quick decision will break down the target of saving money and affect badly. Evaluate the price and need of the good before making any decision to buy or not.
Share experience with other savers
Share an entire experience of money saving with close ones to get better ideas or help to reach goal easily. One can also take the help of inspiring money saving books and website to motivate money saving intentions. These books and websites will help to adopt some better ways to save money.
Celebrate the success
Once you develop the saving habit don’t forget to celebrate its success as it is important. Self-reward boosts the confidence of saving money and always remind about the tough days you have gone through. Saving without goals and without rewards is far too daunting and makes you more likely to go back to spendthrift ways.
How to Save Money – Spending Less And Saving More During Challenging Economic Times
Learning how to save money is always a challenge. But it can be especially difficult when times are tough. The first step always involves spending less than you earn. If you get into a good spending habit and manage your finances prudently, you’re likely to better weather a future job loss or a pay cut.
Spending less on a regular basis allows you to contribute to an emergency savings fund. When needed, you can tap this fund to pay your essential expenses. The following guidelines can help you develop good habits on How to Save Money.
Examine Your “Needs” and “Wants”
First, look seriously at your current budget. Financial professionals recommend making a list of your expenses and dividing them between your needs and wants. Your “needs” include housing, utilities, food and other expenses that are completely necessary. Your “wants” include things you can do without if push comes to shove.
Obviously, your “wants” list is a prime target for cutting expenses. Even if you’re not suffering a hardship, you should reconsider spending your money on non-essential items if you have not built a substantial savings cushion.
How to save money can become an easier task if you cut unnecessary spending to fund your savings. For example, reducing or eliminating restaurant meals or premium TV channels can be a relatively painless change.
Cutting out items from your “wants” list is a good place to start. But, that doesn’t mean you shouldn’t also look to your “needs” list for savings opportunities. By changing behaviour in certain areas, you can learn how to save money on necessities.
For example, you can swap your car for a more economical model, take public transportation or GrabHitch social sharing. You can spend less on clothing by staying away from high priced designer items. And, in many situations, you can buy used items instead of new ones. When you examine your budget carefully, you’ll likely find numerous opportunities to save.
Analyze Your Banking Costs
Recurring fees on your banking and credit card accounts should be evaluated to see if less expensive options exist. Compare banking accounts to get the most benefit at the lowest monthly costs. Don’t use ATMs for cash withdrawals if you’re paying an associated surcharge. And, keep tabs on your checking account balance so you’re not charged overdraft fees.
If you’ve had a good payment history with your credit cards, ask the lender to consider lowering your interest rate. In addition, you should pay the maximum you can afford each month on your credit card balance to avoid excess interest and late fees.
You can learn how to save money by reviewing your current loans as well. Check your mortgage or auto loan rates to see if you can do better. If you don’t expect to move anytime soon, refinancing may make sense. Just be sure to compare the money you’ll save to the refinancing costs as you might find yourself looking for money lender for quick loans to pay off your debt. But your debts will keep rolling.
Reevaluate Your Insurance Requirements
Insurance is a tricky area when you’re trying to cut money. You must have adequate coverage for life, health, disability, liability and property. You may be able to save money by increasing deductible levels.
But, you need to be extra cautious before you cut coverage altogether. A car accident, illness or other loss can wipe out your savings and could even cause you long-term financial distress.
Develop a Plan to Pay Yourself
Learning how to save money is not always easy. But, for the sake of your financial future, you must develop good money management skills. And it’s never too late!
You need to start emergency savings account if you haven’t done so already. Having a fund you can tap for unexpected expenses means you won’t need to borrow from your retirement account or take out a loan. How to save money for an emergency fund involves keeping money in a liquid account. These accounts provide easy access to your funds and include bank savings or money market protected by federal deposit insurance. You should shoot for three to six months of living expenses in your emergency fund.
To avoid being tempted to spend your paycheck on unnecessary “wants”, have a reasonable amount automatically deposited or transferred into your savings accounts. Learning how to save money doesn’t have to be a daunting exercise. Starting small, even $25 a month, can help grow your savings and keep you motivated to save even millions.of dollars.