It is always a question for everyone. Most of us are having hard time when it comes to saving. First ask yourself, which of the formula below are you using?
INCOME - EXPENSES = SAVINGS OR INCOME - SAVINGS = EXPENSE
A lot of people are using the first one. They already know where to spend their salary when payday comes. It's not wrong to spend your hard-earned cash but if there's none left, you have nothing to save, right? If you have no savings, what if you've been fired the day after?
It's a good thing we are now in a world where almost everything can be found in the Internet. From forum threads, blog posts, e-books and cheap books from Booksale, I was able to learn some of the tips when it comes to saving.
Pay yourself first!
I always pay myself first every payday. But it doesn't mean literally to treat yourself or buy something for yourself. Sometimes bu not every time. What it really means is to keep a part of your money for savings and investment. It will be the best practice to buy not-so-really-important things like gadgets. Learn to keep at least 10-20 percent of your salary every payday.
Aside from keeping a part of your salary, here are some of the tips I got from the internet.
- Create a budget and stick to it
- Use a passbook account instead of ATM
- Use automatic saving features if possible
- Use the JARS system
- Bring exact amount of expense for the day in your wallet
- Leave your credit card at home
- Don't spend all your salary.
- Live below your means.
- Look for a cheap hobby like cooking, composing, blogging, etc
- Stay away from malls If you're urging to buy something, return the next day
- Go to work early to prevent riding the cab
- Start investing or at least start learning how to
- Look for other source of income
- Share your blessing.
- Learn how to tithe
It's only some of many tips I've read. It's very easy to save. What prevents us is only ourselves. Discipline is the key. Save now!