Yes, we all want to save more! It is something that is of utmost importance especially with the faltering steps of the economy all around the globe. You never know when and where the rain clouds will darken your day. So it’s better to learn a few basic money saving tips to secure the perfect future.
There are two basic pillars to success when it comes to saving money. Read on to know more!
The mentality to save
Do you have a saving mentality? Earning is tough but spending too easy especially with the online marketing options we have these days. Strike a balance between miserly living and being a spendthrift. Knowing when and where to stop is an art. Don’t let adrenaline take over you and make unnecessary purchases. Exercise a level of self-censorship to maximize your gains. Avoid making expensive purchases on a reflex just because the advertisement popped up. Make a list of what you need for a month and keep aside something for yourself.
Being aware of your choices
There are several avenues that you can employ to increase your chances of saving and investment is one of them. Your savings bank account is also a sort of investment but do research about the avenues of mutual funds and other investment schemes. There are many low to moderate risk investment options and micro-investing platforms. Making a purchase brings you momentary satisfaction, but with higher savings, you will be securing a better future.
Now for some tips on how to save more,
Curb your reflex spending
As we were discussing earlier, with the increased usage of the internet and smart buying platforms through mobile phone apps it has become rather easy to get involved in reflex spending. You can get everything online starting from groceries to electrical appliances. Let’s us take the pledge to never overburden our savings by making a concise list of all the items that are an absolute must for the month. Operate according to your pay packet and try saving a portion every month.
Now for the budget
A nation needs an annual budget. Which means for any operation a budget is highly essential as allotment of funds is necessary to coordinate the moving parts of a plan. You need a budget as well. Make sure you get to the drawing board on this one if need be. Learning to operate within a fixed budget for the month will make sure you are not overspending and falling into the debt trap.
How often do you pay yourself from your own hard earned cash? Chances are you don’t as your spending is all over the place. Your budget should include the expenditure for each month which comprises of the utility bills, unpaid dues, and food items. Make sure you keep aside a part of the income for spending on yourself as well. Treat yourself at a restaurant or a movie once in a while. Enjoy the perks of living a perfectly coordinated life.
Always make sure that you pay your bills and dues on time to avoid hassles in the long run. Program reminders on your smart devices and be an intelligent consumer.
Reducing the debt
You will have unpaid dues on the various credit cards and bank accounts you use. The idea here is to make a list of the minimum payments you need to make for each and then pay up every month at the minimum required amount. Try paying a bit more on the lowest amount. By repeating this process for every month, you will be making big progress while trying to reduce the unpaid dues on your credit cards. Faster repayment of loans is what you are looking for, right?
Is your employer offering you a contribution matching program as a part of the pay package? It will be included within the 401(k) program. It is essentially free money as your employer will be matching your contribution for every month. Do not miss out on this golden opportunity as many avoid it to avoid taking on an extra bit of work.
Make your Smartphone work
We all are Smartphone users, but we never use them for what they can do. You need to stop using your devices for sharing photos, social networking, and playing games. Unleash the power that is within the phone to make sure you are ahead of the game. There are micro-investment apps and platforms available that will enable you to invest safely, keep tabs on the account and save a lot in the long run. Schedule deposits through these apps from your savings accounts and stop worrying once and for all.
Avoiding unnecessary NSFs
Have your bank or institution served you a Not Sufficient Funds (NSF)? If yes, then you are probably not using the account in the correct way it is supposed to. Overdrawing your account is never a good idea as there can be penalty charges against that. You can always look for a bank that has low or none NSF penalty but learn to manage money better to safeguard against “redlining” your savings bank account. Be a responsible citizen and consume this will also ensure the maintenance of a healthy bank-personal relationship and credit score.
FICO and credit scores
Most of us do not pay much attention to out FICO and credit scores. But if you are someone who usually uses his/her credit card for making purchases, investments, payment of mortgages and loans, maintenance of a perfect FICO and credit score is highly important. The credit score matters because a bank or institute judges your value as an asset or liability based on your credit score. Make sure you always pay the minimum dues on time for all the purchases you have done and if your capital allows it then go for pre-closure of a loan after going through the offer documents carefully.
Follow the simple guidelines to start saving more from today!