With the new forms of entertainment and indulgences rising each day and promising us an improved lifestyle, we tend to spend more and more money. Capitalism is on rising, no denying that and with it, we are getting used to becoming the injudicious buyers of the products we don’t even need actually.
So amid all this, saving money is getting tougher and tougher. Be it a housewife, a student trying to save his pocket money, or an employee, savings is something we all find very hard to do.
(Courtesy: Cebuana Lhuillier)Please know that just thinking about saving money won’t help in saving money. You need to start with it, sooner or later. To do that, the best way is to create a money-saving environment. I have some hacks which can come handy for you while doing this.
1. Keep in mind that you are in for long-term saving. Now think how much money you want to say in a specific duration. Once you are done with that, calculate how much you need to save on a monthly basis.
2. The first point was about planning. Now comes the execution part. To save money, divide your expenses into four categories: cost of living (rent and food, etc.); social costs (education, transportation, and tuitions, etc.); entertainment and lifestyle (clothes, travel, eating out, movies, etc.); and savings. Deduct the savings from your income and divide the remaining amount into three remaining categories according to your lifestyle.
3. To make sure you follow this budget, you can try the budget with cash and envelop. Just put the calculated amount in the separate envelops representing each category. This way you will have an empty pocket if you spend too lavishly, and will know that you need to stop.
Also read: What are the 8 smart ways to save money?
4. You can also try having an emergency fund. This will surely help you save loads of money.
5. One more idea is to get a part of your salary transferred into your savings account. It will make you save money automatically.
6. Although you have a well-charted out a savings plan, if you happen to get windfalls, tax refunds, etc., make sure you save some amount from that as well.
All the best!
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