how to save money tips :
Sometimes the most difficult problem of saving money has just begun. Finding a simple solution can be difficult. Sometimes the most difficult problem of saving money has just begun. Finding a simple solution can be difficult.
Sometimes the most difficult problem of saving money has just begun. Finding a simple solution can be difficult. Save a lot of money and use it to achieve your financial goals. This step-by-step guide to saving habits will help you develop practical saving settings.
1. Record your expenses
The first step in saving money is to figure out how much you spent. Keep track of all your expenses, recommend coffee, newspapers, and every snack you buy.
You will be able to count every penny. After obtaining the information, organize the numbers by categories, such as gasoline, groceries, mortgages, and personal total. Consider using your credit card or bank statement to help. If you deposit online, you can filter your report to share your expenses.
2. Make a budget
Once you have a plan, you will spend it within a month. You can start putting the savings into your possible budget. Your budget should explain how your expenses affect your income.
Therefore, you can set spending limits and limit overspending. In addition to monthly expenses, consider frequent but non-monthly expenses, such as car maintenance. Find a lot of information on how to budget.
3 savings plans
After creating the budget, let’s create an economic category in it. Try to save 10-15% of your income. If your expenses are so high that you cannot save a lot of money. It may be time to cut costs.
In doing so, find out which unnecessary items can reduce costs, such as entertainment and dining out. We have included ideas for saving money every day. And reduce your monthly fixed expenses.
Tip: Thinking of saving as a daily expense (such as food) is a good way to develop good saving habits.
4. Choose what to save
One of the easiest ways to save a lot of money is to set goals. First consider what you need to save a lot of money. From home savings to holidays and then find out how long you will spend saving. Help determine the time interval
Here are some examples of short and long-term goals.
Short-term (1-3 years)
- Emergency fund (3-9 months of residence just in case)
- Prepaid car
Long-term (more than 4 years)
- Your child’s education
- Advance payment for house or renovation project
If you are saving money for your child’s retirement or education. Consider depositing this money in an investment account. Although investment is risky and may cause you to lose money, if you plan to organize activities as early as possible, it will also create an opportunity for compound returns.
5. Determine your priorities.
After your expenses and income, your goals may have the greatest impact on how you save money. Remember your long-term goals-retirement planning should not lag behind short-term needs. Prioritizing your goals will give you a clear idea of where to start saving. You can start saving money to buy a car.
6. Choose the right tool
If you save for short-term goals
- Fixed savings account
- High-yield savings accounts have higher interest rates than regular term savings accounts
- Money market bank savings accounts with variable interest rates, which increase as your savings increase.
For long-term goals, please consider:
-Securities such as stocks or mutual funds. These investment products can be obtained through the dealer’s investment account.
Please note that bonds such as stocks and mutual funds are not insured by the company and are not a substitute for bank deposits or bonds. Not affiliated with the bank and investment risks and possible loss of major investments.
7. Make an automatic backup.
Almost all banks offer automatic transfers between your checking account and savings account. You can choose the time, amount and location of the remittance. Or, direct deposits may be split between your time deposit account and savings account.
Automatic transfer is a great way to save money. Because you have nothing to worry about. It usually reduces the urge to spend money.
8. Focus on your economic growth
Check your progress every month. This will not only help you continue your personal savings plan. These simple ways to save a lot of money can inspire you to save more money and achieve your goals faster.