- Set a goal – there should be an end goal in mind. Know the reason why you’re saving money; this will encourage you to avoid small purchases because you have your eye in a bigger prize. So find out, “Do you want to have your own apartment?” or “Do you want to retire when you hit 40?” Think about these things the next time you want to buy a designer bag.
- Set a deadline – it is important to place a deadline on your goal. Write it down in your journal or even on your computer screen or bathroom mirror. Look at it every day. This will constantly remind you why you’re working so hard and saving money.
- Analyze expenses – you probably have a rough idea where your money is going but it is still critical to identify where everything is going. That way, you’d be able to eliminate unnecessary expenses. The amount of money that goes into “impulse buys” may be shocking.
- Create a budget – after you’ve analyzed your expenses, the next step is to make a budget. Calculate how much you’ll need for necessities such as food, mortgage/rent, utility bills, and transportation costs. Of course, you should also create a budget for leisure and miscellaneous expenses.
Most people know it is important to save money, but being able to save is another matter altogether. There are just so many great products that entice you to part with your hard-earned cash. Even those with the best intentions end up giving in to the impulse to buy now and then. Discipline is important. But even more crucial is to build up the habit of saving money. Here are some tips that will help:
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AuthorI started this blog to offer up some no-nonsense advice to success in personal finance. I might also cover some other related topics over time too. Archives
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