Today, we are living in
tough times. The entire global economy is on a downswing and we must do
what we can to save our money as much and as early as possible even if
it wants us to "force" ourselves for doing it. Indeed, it's hard to
change the whole picture individually, we should at least take a grip of
our own priorities and bring a change now to ensure the security of our
own family with frugal living.
Here are some major steps you can take in order to learn how to save your money.
1-FOCUS ON SPENDING
I-Write down every penny
you spend on a daily basis and regularly so that you can see and check
what, where and what you are spending your money on.
II-Get rid of what you don't need, wander around your home, search and choose the things that you don't need, sell them.
III-Refinance the mortgage on your home to decrease your house payments by several hundred dollars.
IV-Cut back on
entertainment expenses. For example, instead of purchasing your favorite
DVD, you can either look online for used versions or rent the movie.
You can do the same with music and video games.
V-Educate your kids about
how to save money. Teach them to understand the importance of money and
the influence it will have on their future lives.
2- DEPOSIT AT BANK
I-Open a saving account
and determine how you will be saving everyday, month, quarter, mid year
and every year and you will be well-prepared and equipped economically,
especially when unseen circumstances arise.
II-You can ask your employer to put at least 10% of payment into a high interest bank account, after a while you won't miss it.
III-You can think of putting your funds into a term deposit to keep them there for several months and not withdrawing.
IV-If your life partner
is a good saver, you can ask him / her to open a personal bank account
where you can deposit and secure your money without having your own
access to it.
V-Using an interest-based
current account will give you an advantage of withdrawing with cheques
or ATM. You will have to always leave some balance in the account daily
and it will yield interest.
3- GET DISCOUNTS
I-Get
the best discounts on the things you buy and need to buy so that you do
not over pay and you are satisfied with your purchase.
II-Look for freebies, rent instead of buying and buy things in bulk, use recycle papers and look for used good off the internet.
III-Utilize package deals on cable, internet, and phone from cable companies at a discounted rate.
IV-Clipping and using
coupons is a great way to save money on everyday expenses. Coupons are
abundant through local newspapers and the mail and are very easy to
collect, and you can really get quite a few fairly quick.
V-During shopping, get
benefit of various consumer offers and sales.g. buy one get one free.
For grocery shopping, check if you can search for some big whole sales
stores instead of making expensive purchases at typical retail shops.
4-SAVE ENERGY AND FUEL
I-You can cut-down your
electricity bill by switching off the unused lights or adjusting the
temperature settings of your refrigerator. Use fluorescent light bulbs
in your house. Only use the dishwasher when it is full.
II-Think of replacing your old appliances with energy-saving devices which carry labels being an energy saver.
III-If you insulate your home, it will reduce the cost of heating and cooling.
IV-If you're a homeowner,
consider converting over to a gas water heater. They are very efficient
and hence will help you save your money over a course of time.
V-Save gasoline for your
automobile by check tires regularly, accelerating and decelerating
slowly while running and removing unnecessary weight. Keep
filters/converters clean and if possible, try to keep windows and
sunroofs closed especially at high speeds.
5-INVEST WISELY
I-You can lend money to
financial institutions for a specified time so that, later, your money
can be repayed to you with interest. A lot of investing options are
available nowadays, such as bonds, insurances, stocks, etc.
II-Refrain from being in
debt and manage your investment plans successfully. Refrain from debts
that involve high interest rates.
III-If you prefer a long
term saving option, the insured account of money markets can be your
choice. As it is for a long time period, the financial institute offers a
good interest rate.
IV-You can also invest your money
in collectibles and other items that will grow in value over time. You
know that they are going to grow, so you hold on to them until the time
comes that you need to sell them.
V-Don't forget to
concentrate on the basic investment areas.g. stock market, share market,
real estate, business, partnerships, joint ventures etc. Choose an
option that suits you the best.
Summing up, if you know
the right ways, it is easy to make money. With little imagination,
creativity and self-discipline, you can help yourself in holding your
hard-earned money to a great extent. Frugal living will make a huge
differences in your bank account!
