Whether you’re making a lot of money or your salary is more than enough to meet all your family’s financial obligations, it’s never wrong or too late to start saving money for the future.
Here are a few tips to help you get started:
Personal Budgeting
When you talk about saving money, personal budgeting is one area that can never be ignored. Many self made rich people do some kind of personal budgeting and financial planning during their initial years. It is almost a compulsory phase that these self made rich people go through. Try talking to some self made rich people that you know and I am sure they can relate how important is personal budgeting.
There are many ways of saving money, but personal budgeting is one which will give you long term roadmap to achieve your financial dream. Personal budgeting can start at any phase of your life. It can never be too early or too late. If you have not started one and interest to know more, just explore this blog for free tips. If you convinced and serious in starting one, you can looking around for one that for you the best personal budgeting solution. Remember to read the previous customers’ testimonials before you decide.
Please also read ‘7 real steps to Financial Freedom’.
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Use credit card only when necessary
Using credit card money is like using your future money. A lot of high level executives got into financial troubles using credit cards necessarily. My old folk’s traditional advice is ‘Don’t spend what you have not earned’. Although this phase has been around for so long and repeated uncountable times, but still there are many people who got burnt because not practising it. This is especially true if you are a person with weak money management skills.
Try to use credit card only as a convenience tool to settle your bills. This mean, settle all your credit card outstanding bills in full each month. This will help you to save a lot interest on those outstanding bills, if any. Try not to do cash advance from your credit card. It is very espensive action as you will be charged a cash advancing fee and your interest on the cash advance start immediately on the day the money is advanced. Read your credit card terms and conditions carefully and look out for this cash advancing facility.
If credit card is necessity, only hold one. A lot of people hold multiple credit cards. Although some credit cards offer free membership, hold one will be enough. The more credit card you hold, the more tempted you will be to spend.
Spend less
One of best ways to improve your saving account is to cut down your expenses and spend less. Such thing is easier to say than to action. Many people find spending less is very challenging and save up the money for the future is even more challenging.
Before you make a purchase, try to evaluate whether the item that you are buying is necessary or will bring you any benefit. If you are replacing an old item, ensure that the old item is obsolete. If the old item can still be used, why bother to replace it. Ask yourself these questions before making any purchases.
Using these few simple guidelines, you will find that spend less is all within your control. And just by putting in a little bit of discipline, you will be able to do it.
Cut your own hair
Instead of going to a barber for hair cut, why not try cutting your hair at home. You need someone to do this for you and your family members, house mate or room mate are the best choice. Just spend a couple of dollars to buy a set of hair cutting tools. Cutting hair is really not a difficult task. Initially, you may find it cumbersome, but after a few sessions, you may even find it enjoyable and very easy to do. Advantage is you can decide when to do it.
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Eat More Vegetables instead of Meat
Try eat more vegetables than meat. Meat is know to be more expensive than vegetables. The real comparison is between meat, and the protein substitutes I use. Most of my protein comes from tofu, although I do eat beans and soy protein such as fake ground beef or soy burgers. But this does not mean, you don’t eat meat at all. Just that you eat lesser meat.
Make full use the library.
The library is built for people who like to read books. The variety of books in the library is a lot. My wife, my children and I, love to go to library at least once a week. We sometimes read there or borrow books from the library especially for my son. Getting your family to the library at least once a week, is a very good habit especially for the children. Your children will pick up this habit unintentionally from young and most in most cases, the children will learn to love books when they grow up. You only need to pay a nomimal fee to join as a library member. Borrowing books from library is free but if you lost the book, you got to pay. You can save money by borrowing books from the library instead of buying.
People who read this page also read ‘How to formulate a roadmap to financial freedom’.
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