* 8 Simple ways to save money *
Saving is easier when you have a plan- follow these steps to create one.
Sometime the hardest thing about saving money is just getting started.
This step-by-step guide can help you develop a simple and realistic strategy, so that you can save for all your short-and long-term goals.
1. Record your expenses
The first step to start saving money is figuring out how much you spend. Keep track of all your expenses-that means every coffee, household item and cash tip as well as regular monthly bills. Record your expenses however is easiest for you-a pencil and paper, a simple spreadsheets or a free online spending tracker or app. Once you have your data, organize the number by categories, such as gas, groceries and mortgage, and total each amount. Use your credit card and bank statements to make sure you have included everything.
2. Include saving in your budget
Now that you know you spend in a month, you can begin to create a budget. Your budget should show what your expenses are relative to your income, so that you can plan your spending and limit overspending. Be sure to factor expenses that occur regularly but not every month, such as car maintenance. Include a saving category in your budget and aim to save an amount that initially feels comfortable to you . Plan on eventually increasing your saving by up 15 to 20 percent of your income.
3. Find ways to cut spending
If you can't save as much as you'd like, it might be time to cut back on expenses. Identify nonessential, such as entertainment and dining out, that you can spend less on. Look for ways to save on your fixed monthly expenses, such as your car insurance or cell phone plan, as well. Other ideas for trimming everyday expenses include:
Search for free activities :-
User resources, such as community event listing, to find free or low cost entertainment.
Review recurring charges :-
Cancel subscriptions and memberships you don't use-especially if they renew automatically.
Examine the cost of eating out VS. cooking at home plan to eat most of your meals at home, and research local restaurant deals for nights that you want to treat yourself.
Wait before you buy
When tempted by a nonessential purchase, wait a few days. You may realize the item was something you wanted rather than needed -and you can develop a plan to save for it.
4. Set Savings goals
One of the best ways to save money is to set a goal. Start by thinking about what you might want to for-both in the short term ( One to three years ) and the long term ( four or more years ) Then estimate how much money you'll need and how long it might take you to save it.
Common short-term goals: Emergency found ( three to nine month of living expenses ) Vacation or down payment for a car.
Common long-term goals : Down payment on a home or a remodeling project , your child's education or retirement.
* Short-term goals
If you'll need the money soon or need to be able to access it quickly, consider using these FDIC-insured deposit accounts:
* A savings account
* A certificate of deposit which locks in your money for a fixed period of time at a rate that is typically higher than that of a saving account.
* Long -term goals
If you've saving for retirement or your child's education consider:
* FDIC- Insured individual retirement account (IRAs) or 529 plans, which are tax-efficient saving accounts.
* Securities, such as stocks or mutual funds. These investment products are available through investment account account with a broker-dealer.
5. Determine your financial priorities
After your expenses and income, your goals are likely to have biggest impact on how you allocate your savings. For example., if you know you are going to need to replace your car in the future, you could start putting away money for one now. but be sure to remember long-term goals-it's important that planning for retirement doesn't take a back seat to shorter-term needs. Learning how to prioritize your saving goals can give you clear idea of how to allocate you saving.
6. Pick the right tools
There are many savings and investment account suitable for long-term goals.And you don't have to pick just one. Look carefully at all the options and consider balance minimums, fees, interest rates risk and how soon you'll need the money so you can choose the mix will help you best save for your goals.
7. Make Saving automatic
Almost all banks offer automated transfers between your checking and saving accounts. You can choose when, how much and where to transfer money or even split your direct deposit so that portion of every paycheck goes directly into your savings account.
The advantage: You don't have to think about it, and you are less likely to spend the money instead. have to other easy savings tools include credit rewards and spare change programs, which round up transaction to the nearest dollar and transfer the difference into a savings or investment account.
8. Watch your savings grow
Review your budget and check your progress every month. That will help you not only stick to your personal savings plan, but also identify and fix problems quickly. Understanding how to save money may even inspire you to find more ways to save and hit your goals faster. Remember that securities are not insured by the FDIC , are not deposits or other obligations of a bank and are not guaranteed by a bank. They are subject to investment risks, including the possible loss of your principal.
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