4 Tips On How To Easily Save And Manage Your Money
As a child, did you have a piggy bank? Whoever bought it for you was just trying to teach you how to save money.However, most people took this important life lesson for granted. They never saw the significance of saving the money because the parents could provide whatever they needed. It was not until they became adults that they realize that managing and saving money is an incredibly important!
Most of us adults today struggle to save money. The salary is never enough no matter how big it is, and most people end up borrowing before their next salary. Nonetheless, those who know how to budget properly find their salary sufficient. Below are some tips to help you manage your finances effectively.
Keep Track Of Your Expenses
The first step to managing your money and expenses is to track your money. Before you claim your salary, list your monthly expenses and allocate a budget for them. This may sound exhausting and time-consuming to do, but it will help you in the long run.
Tracking your expenses will give you an idea how your money flows, and you may be surprised at just how much money you waste. Also, you will see just how much you take for granted little things that cost around $10. You will be able to seal all the loopholes you create through poor budgeting!
Make a Budget
Now that you already have a general idea of how your money flows, you should be strict with your finances and make a budget. When making a budget, remember to allocate a portion of your income to your savings automatically. Just follow the formula
You have the freedom to determine what percentage to allocate to your savings depending on your lifestyle. For those beginners, we recommend at least 20 percent of your income to go to savings.
Set a Savings Goal
The best way to save is to set a goal. If you don’t have a goal, chances are, you will lack the motivation to save money. People have different goals in life, but you can categorize your savings according to your goals. These are:
Short-term (1–3 years)
- — Emergency fund (3–9 months of living expenses, just in case).
- — Vacation.
- — Down payment for a car.
Long-term (4+ years)
- — Your child’s education*
- — Down payment on a home or a remodeling project.
If your goal is to save for your retirement, start a business, etc., then we recommend you go beyond your savings and get an insurance policy or investment. This way, by the time you’re too old to do things, your savings will fund your lifestyle.
Get Your Priorities Right
Once you set your goals, decide on your priorities. Do you really need to buy a new set of clothes when you already have piles in your closet? Is buying a new model of iPhone worth it when you have a working Smartphone? Instead of spending on trivial things, why not set it aside for savings? Once you save, you will be able to buy all these things (and even more) in future.
More in Career Counseling
Find Out Your Chronotype to Increase Your Productivity!
No matter how inspired or motivated you are, there are times when you feel tired and bored. When your productivity starts...August 22, 2017
How to Deal With People Who Like to Undermine Your Actions
Whatever the occasion might be, most of us have dealt with a friend or a family member who seems to enjoy...August 22, 2017
Why Could You Be Suffering From Aging Skin?
Are you regularly hopping in bed without washing your makeup? Are you in the habit of trying out every skin product...August 22, 2017
Suffering from Inflammation? Stop Eating These Foods Right Now!
Most health professionals paint inflammation as a bad thing that can jeopardize your health. However, some others say that it is...August 22, 2017
Signs That Your Partner May Not Be Right For You
Have you chosen the right romantic partner? That is a hard question to answer. Every couple has its own unique situation,...August 22, 2017
Binge Eating Can Prove Harmful To the Health
Food is an essential commodity which is a requirement for everyone. Quite a few people, however, have too much food on...August 22, 2017
5 Indicators Of A Successful Business
Owning a business has astounding benefits. However, having a business can either make or break you. It can make you—you get...August 22, 2017
KNOW WHEN TO OR NOT TO DO IT! HERE’S HOW!
One certainly gets to the age where he/she has tried everything and experienced different things in life. You would definitely reach...August 22, 2017
7 Ways To Relieve Computer Eye Strain
Many of us spend a lot of time in front of computers; some are even full-time employed in front of the...August 22, 2017