Top five on how to save money tips brings you crucial advice that you must follow in order to avoid draining all your hard-earned money away.
To lead a healthy financial life you need to save money for a rainy day. You need to know that the more savings you accumulate over long period of time the richer you become. To grow your own wealth you need to have savings that you can deploy or investment so to generate passive income. Without savings you don’t have the capital to start a business, go back to school or even to build or buy a home.
Here is some basic money-saving tips that you need to observe so as to manage your money prudently.
1. Stay away from your money always:
Don’t make money your number one companion rather you may want to treat it as your enemy. To ensure that you don’t spend un-budgeted money, put it away in a savings plan. If you don’t need it now, put it away and you will not spend it because it isn’t in your pocket. Make it hard to spend and the money shall be saved.
2. Learn to treat your Savings account as another bill that must be paid first:
Pay money to your savings account as though it was a bill that must be paid promptly and you will succeed in saving your hard-earned cash for a rainy day. The first thing you must do after receiving your pay check (cheque) is sending a pre-determined amount to the savings account.
3. Be careful with your shopping habits:
People lose a lot of money in the supermarket for buying impulsively thus overshooting their budgets. To deal with this problem make sure to carry the exact budget meant for shopping and not a cent more.
4. Take no Credit Card Debt my friend:
Credit card debt is expensive because of high interest rates associated with this type of consumer financing. If you must take credit card debt please ensure that you pay it in full within the stipulated time to avoid debt accumulation and other penalties such as late payment.
5. Live within your means my friend and you won’t get into financial trouble:
So longs as you have a roof over your head, the rest you can persevere until you are able to save your way out of financial difficulty. If you can’t afford a car, don’t take a loan to buy one, take public transport instead.
• Save 10% of your pay check
• Strive to finance your lifestyle with 60% of your earning power
• Look for extra income streams to supplement your main source of income