Finance

How To Save Money From Salary Every Month

To save money is an ideal thing to do especially when you have plans to do it in the near future. This will let you save any amount that you want to use in the future. There are instances that we need money instantly, and if we have our own savings we can already resolve any problem that we wanted to.

In many cases, having your own money being saved in your pocket and even with banks is the best way for you to save also the future of your family. However, for you to save money effectively, you must be able to plan it well, and this will guide you towards good savings that just for your benefit but as well as for the whole benefit of your whole family.

In saving money the very first thing that you should do is to set a goal. Make up a goal since this will guide you towards the accomplishment of the desired savings that you have wanted.

Goals

If you have goals like buying a video game, a dress, or furniture at home, this can be a great reason for you to save your money in order to have the short-term goal that you have planned. If you are planning to find and buy a house, then this can be the best reason for you to save more for yourself and your family. Make sure also to find the exact cost of the things that you would like to buy so that you can estimate the length of time that you should thrift and save money for it. In many things that you wanted to buy, you can have it accomplished if you have a goal being set in your mind.

Also Read: 5 Basic Insurance Mistakes to Avoid

Savings

Saving money also is also a good way for you to accomplish your plans especially when you are a newlywed couple, and you wanted to stand on your own. You can possibly have your own house through the savings that you have. However, in order to have effective savings, you must kill your debts first. This means to say that you cannot save that much if you still have your debts, that is why as much as possible put an end to it right away. Calculate the necessary payment that you need in order to pay your debts, and when you are through with it you can immediately start the good savings for your goal.

Fixed record

The next thing that you can do is to have a fixed record of your expenses. This will give you certain guides on your basic expenses per month. Thus if there are necessary adjustments with your basic commodities you will know how much have you extended for your expenses. If you have the right plan for your expenses then you can also have the exact savings that you will get from your salary every month. You can also make records and decide on what basis will make your saving. You can choose it to be on a weekly basis or in a monthly basis. You can also decide on what percentage of your salary will be the amount that you are going to save in a week or even in a month.

Basic skills

This article is mainly for people that have no assets or savings and need to start at the beginning. It’s important to have this basic skill. Without it, you won’t learn how to manage money. So even if you got given a large sum of money then you wouldn’t know how to handle it – if you don’t have this skill.

So this is for the people that want to buy a house (or an asset) and have no savings to do so. This will teach you how to save. The easiest way is to save 10% (or more) of your income.

Your self-employed income won’t be taxed until you do your tax return so you need to have money put away for this as well.

So the best way to have the 10% saved, is to have your employer put 10% of your wage into another bank account, perhaps a bank that is not in your town or city and doesn’t have a keycard or internet access to it. So the 10% just goes into their every week and you don’t even know it.

The reason that you want to buy another house is that in the long term it will give you asset growth and an income in the form of rent.

Also Read: How to Pick the Right Insurance Policy for Your Child

Monthly savings

Most people receive their salaries every month. This entails a spurt of spending from the 1st to the 10th, moderate spending till the 20th, and then a crunch as the last week of the month hits. However, necessities have to be paid for, so that goes into the credit card bill. In the end, this becomes a vicious cycle, leading to mounting credit card debt.

In order to have some money left at the end of the month, it is best to budget weekly. First of all, set aside the sum required for monthly maintenance – house rent, Internet and telephone bills, credit card bills, loan dues, tuition fees, babysitter’s wage, and so on. Divide the rest of the money into five parts.

By dividing money into five parts for four and a half weeks, you automatically have half a week’s worth of funds to use as emergency expenses. DO NOT touch this till the last week of the month, or in case of true emergency situations – no, that awesome band at the pub is not an emergency!

Begin the “budget week” on the day when you make your biggest expenses – groceries, bills, etc. If you are a daily shopper and tend to spread your expenses throughout the week, you can begin the week any day you like. Sometimes, though, the weekly budget is simply not adequate to meet your needs and pay back existing debt. This is when you have to consider serious downscaling.

Bulk buying

Buying in bulk and using coupons cleverly can reduce your budget for essentials to nearly half. If necessary, split the cost of the bulk purchase among neighbors and friends, so that everyone benefits. Also, try to buy food in as unprocessed condition as possible. Cooking from fresh raw materials from a local farmer’s market and freezing the meals once a week works out much cheaper than buying frozen food from the departmental store.

Keeping tabs on your expenses

Finally, keep tabs on your expenses. Bills can spiral out of control even when you think you are being frugal. Stay aware of this, and know exactly how much you have spent every week – and what percentage of your income is left for the rest of the month.

Also Read: 5 Reasons Why Health Insurance Is a Must for Everyone

Of course, no amount of budgeting is useful if you fail to stick to your plans. Whatever budget you prepare, make sure to keep track of every penny spent, and to refuse any additional spending. If this means you end up buying non-organic food, ten fewer bars of chocolate, or one less pair of shoes – don’t let it matter. Your finances come first.

Leave a Reply

Your email address will not be published.

Related Articles

Back to top button