Have you ever been in the situation at the end of every month when you are only left with empty pockets? I think many of us can relate to such happening where you’re being paid on the 1st of the month and at the end you wonder “where did all my money go?” Well this happens when we don’t have the habit of keeping the track of our money and some of us may not be in the habit of saving their money. Sometimes the hardest thing about saving money is just getting started. Saving is an essential cornerstone of living a Rich Life. It allows us to invest and help our money grow, as well as do the things we want in the future. It can be difficult to figure out simple ways to save money but don’t you worry here we have got the most effective techniques of saving money so that instead of panicking at the end of every month you can sit back and relax.
Buy/Build assets and avoid liabilities
First thing to put up in your list is to know the difference between assets and liabilities. Assets put money into your wallet, preferably each month. They will feed you even if you are not working and liabilities take money out of your wallet, usually monthly. They will eat your income even if you are working. Even the very house you are living is a liability if it is not giving you back in the form of money. If you were to lose your job, this liability would be the one that would eat your savings the fastest. Best thing to do here is to keep your expense box as empty as possible and fill in your asset box as maturely as you can.
Learn to keep most of your money
That’s easy to say and a nightmare to do. We are in a habit of spending first and and saving at last, and when the time comes to save we are left with nothing but few pennies. And that my friend doesn’t make any difference to your pocket. Focus on the most important of your expenses and cut down the least important ones. Have a piggy bank for all it takes!
Create a spending plan
Your life’s peace is defined by how much money is left at the end of every month. One of the best strategies of saving money is to pay yourself first. What this means is that you designate a certain amount of your pay cheque as your pay to spend for your personal use. Divide your spending into titles and designate a certain amount to each title and spend on which you think is more important and what can wait for future.
Keep a track of your spending
You may have a good handle on your monthly bills, but what about your daily expenses? The first step to saving money is to getting your finances on track is to know where your money is going. When you see all of your expenses laid out, you may be able to identify some simple changes that could make a big difference in your financial situation helping you stretch your paycheck or build your savings.
Save when you are not earning
Most of us want to save money so we can build wealth and plan for the future. We have goals we want to reach (like traveling) or things we want to buy (like a dream home). However this seems impossible when you are earning at the moment. Instead of trying to cut back your small expenses, focus on the larger ones so you can make more of a significant impact. Think about what you’re good at doing, what kind of hobbies can earn you money, or what you already enjoy that can be turned into a side job. This will help you in saving money.
Learn from the people who know the subject well
The best way to learn how to save money is to look up to the people who have been through financial crisis and have risen from the deep pit and have been doing much well now. It could be someone from your family or one of your friends who can tell you about their stories of struggle in such a time. You can also surf on the internet about some famous personality who might have face a similar situation like your’s, who could give you tips on saving money. These live examples can guide you best in what you want to achieve.
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Article by Born Realist