3 Tips To Save Money

In this post I will talk about what are the problems faced by majority if not most of the population. One of the many reasons why people choose to not save money is because of insufficient income. Many people who doesn't have a decent job, they turn to odd jobs and side jobs to get additional income. It is not as easy to earn as much as to spend. Even though you have have a job, a career going but if your expenses and bills are as high as mountains, begging to be fulfilled each and every month, there will be nothing left to spend which then brings in fear. The fear of losing money, the fear of not earning enough, the fear of losing things that you care and you treasure basically even if it means that precious mug that you have tucked away in your cupboard. You have your house, your car, your wife, your kids, your other commitments which is then paid by the majority of your salary, you'd be left with little leftovers to slide in that tiny little piggy bank. Usually most would spend everything else, and then pay themselves with whatever that is left after expenses and commitments but I'm here to tell you that there are other ways. 

Tip #1 : Pay yourself first

Now, you've been doing the same routine every single day for the past few years and you still have little to none savings. You paid off everything else, sure, you have lesser pressure of this and that not getting paid. But what about yourself? What do i mean by Pay Yourself First is that when the salary comes in every month, you allocate some of your money to yourself first. Think of it as, you owe yourself money. The money that you loaned from yourself to pay off all of the debts and bills and whatnot, pay yourself first. Slide a fixed amount of allocated money into that piggy bank every month and watch it grow. Sure it doesn't compound - everyone loves compounding profits yes? But no, although it doesn't work like an investment but a little money from time to time, will help you in the long way. You may find that in the future, unforeseen circumstances may happen. During those times, coming from a first hand experienced random fellow, you will definitely be thanking that little piggy bank that's been collecting dust as well as your past self for making this decision. Who knows perhaps you may save a life with it one day. 

Tip #2: Allocations.

Remember when I told you about allocating a little percentage of your money to be saved into your bank for future or emergency uses? That's right, now you do the same allocations for the rest of your money as well. Allocating your money is very important why? Because it can help you keep track of what goes where. It would not be complicated and it's easy as pie. Take a look at the steps below:

1. Find out the exact amount of income you have every month.

2. Find out how much is your fixed spending every month

3. Allocate a round-off amount for those to be paid out.

An example would be as below.

Aren't my exact numbers but just an example to show you.

First step of finding out the exact numbers of your income is important because it helps you to plan better and easier. It can be from your income, from your investments returns, side businesses, hustles, etc. 

Once you've done that, note that at this point, Allocate the amount for your savings first. Remember my first tip, pay yourself first. By paying yourself first, you wont be getting rich the next day but you are already taking the first step in the right direction of having money for future uses. Then you note down the things that your monthly income is fixed to pay off - bills, loans, etc. 

It is better to have allocations why? because you can track the amount of money that you have spent for that particular expense. That way, you are clear about where your money goes. 

There will bound to be leftovers from those allocations and what do you do with them? Two options: 

1. You can either take the remainder from one expense and put in another as below: 

This is so that in this case, you have a little more of food than usual. A little more of a small luxury if you will perhaps if you fancy to bring your partner for a meal in a restaurant perhaps?

OR

2. The remainder goes straight to your savings. 

All in all, plan your own finances in your own ways that is easy and convenient for you. The main take away from Tip #2 is that you have a way to track your money and know what goes where. Its better for the general to know where the soldiers are pushing or fending off attacks than not knowing what's going on in the battlefield. 

Tip #3: Cut The Crap

I don't mean to step on anybody's toes by the heading but what I meant by cutting the crap is to cut off things that you may not need. Separate your wants from your needs and you will be able to get a better lookout of your money. 

If you feel the "want" to buy a extremely big tv, think again. The point is, know your wants from your needs. Cut yourself away from things that does not benefit you in long term. If you have something that you really want, sure you can get it but think about it - once you spend this money, is it going to put you in a tough spot in the next few days when the bills show up in your mailbox? If its a big yes, put it back. If you can afford it AND pay off debts and bills then by all means. 

Furthermore when you know what you need, its paramount that you know your needs come first. "Wants" can come later, your "Wants" will be sticking around for a long time. 

Conclusively, there are a large amount of ways for anybody to start saving money. Do comment below what works for you. I do apologize if I have said anything offensive but my message is but a tiny helping hand to those who have financial difficulties. 

There you have it with the 3 tips that I would like to share for anybody who would like to start saving money! Do feel free to comment below. Ideas and suggestions are most welcome!