how to save money

How to save money

If you are reading this article, chances are high that you want to know how to save money for future.

Is saving money so difficult that you need some super tips to save money more consistently? Though saving money is not so difficult, it is not very easy too. To save money consistently, you have to work by focused manner in multiple ways.

By adapting some good habits on money management, a person can achieve his goals smoothly. So what are these simple yet effective money management steps? Let’s discuss one by one.

how to save money

1.Save 10% of money when you receive salary

This is one good start to save money but it needs discipline to implement. People might think that there is always shortage of money at the end of month. So how can I save 10% money? And so 10% saving habit will not get implemented.

But when you just follow this rule without asking any question, you will realize that keeping 10% aside not affect your overall budget. Your expenses will be in limit of remaining 90% amount. Just do it for next income. Transfer this 10% money in other bank account. Remember, this 10% is only for investing purpose and not for any expense.

2. Make list of your shopping

Going to supermarket? Don’t purchase things without making list. When you don’t write the grocery items on paper and shop it, chances are high that you purchase unwanted things.  Besides making list, you can also buy necessary things in proper sized packs. Don’t go for big size pack if you do not need that much quantity.

By doing this, you can save good money. By making list, You also avoid ‘impulse buying’ which is difficult to avoid in unplanned shopping.

3. Make expenditure diary

This small habit of recording your expenses will give you big benefit in money saving. How? Because when you start to write your all expenses in this diary, you will more keen observer towards spending habit. By reading your previous expenditure list, you will certainly find some area where you can control expenditure and this habit will save your substantial amount of money.

By reading your expenditure diary, you are actually making habit of reading numbers. Money can be saved rapidly if a person is expert in reading numbers in brain. Its all about numbers, percentage, ratios that ultimately leads to a good saving corpus.

4. Write your saving goals

This practice helps you to adapt discipline of saving. By setting saving goals, you will have clear idea about how much you want to save in particular timeframe. Once goal is fixed, it is much easier to achieve it.

This habit also helps to train the brain unconsciously. When a person write his/her goals on paper, he/she starts to think about achieving the goals. By this exercise, a person can achieve his saving goals more easily.

5. Avoid debt

Though this is not directly related to actual saving, but by avoiding any unnecessary debt you can save more money in future. Debt reduces your free cash available for saving. By saying NO to any unnecessary debt, you will enhance future saving amount.

These are some simple tips useful for saving money. Next part of saving money is investing it in suitable investment products to earn good return.

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