How do you save?

[wasteful35]

For years, I’ve been working for myself but I have never really had any savings. I’m not sure how to effectively do it. Everytime I attempt to save money, I end up using it one way or another. I usually just put my money in my savings account and leave it there to “save” but I end up withdrawing most, if not all, of it. This was okay when I didn’t have plans to start a family but now everything has changed. I have a girlfriend and though it’s only been six months since I met her, I realized I need to get my life together and I should start by saving for my future. Do you guys have any suggestions on how to save effectively? Should I start segregating my salary?

[Julia]

Do you feel that you are spending more than you should? Are you finding it difficult to make both ends meet? Are you still not able to take your family to the exotic locations you like for your annual vacations? Then, it is high time you must think of ways to save money. In fact, these ways can help you save money quickly as well. Not only that, you need not struggle very hard for adopting these ways. Let us have a look.

The foremost step is that you should make up your mind to save money. Unless you plant this thought firmly in your mind, you will not be able to stick to the ways suggested here which means you can never achieve the financial independence you have been craving for.

1. You must first know where your money goes. This means you must start maintaining a journal or an account book to record your income as well as all the expenses you make. You should be careful not to leave even a small expense. Remember the age-old proverb "little drops of water make the mighty ocean." This means that if you focus on the micro transactions you make, you can achieve your aim of saving money.

2. After knowing where your money goes, you must identify those expenses you are unnecessarily incurring. Some of your daily habits, a few of your tastes, and some of the rituals you have been following all these years may be leading to unnecessary and avoidable expenses and hence, you must identify them first. In other words, you must make certain fundamental changes to your daily habits. The daily habits and rituals you have all along been sticking to may be giving you positive feelings on a short-term basis. It is true that your saving habit will not give you positive feelings immediately. But after a few months or years, you will certainly start reaping the benefits of your saving habit.

3. Be firm in not succumbing to the lure of extended warranties

When you buy appliances or equipment for your domestic use, the sellers may try to lure you for buying extended warranties. You should not succumb to their alluring words. Remember that domestic appliances have a definite lifespan and there is no point in buying additional warranties for them. Instead of wasting your money on buying such extended warranties, you can go for new appliances.

4. Opt for refurbished gadgets

Most of us have a wrong notion that only new, branded gadgets will be good. Not only that, we think that by buying new, branded goods, we can stay relevant. In other words, we are obliviously becoming a prey to unnecessary peer pressure. The main fact we must not ignore is that used and refurbished goods are as good as, if not better than, new, branded items. In short, if you go for refurbished goods, you can get appliances in very good working condition. At the same time, you will not incur heavy expenditure for buying them. Of course, you may not get the latest appliances but if you make judicious choices, you can get the ones that may serve your purpose.

5. Keep challenging yourself on a constant basis

Set short-term challenges so you will find it easy to succeed in your efforts to save money. This is similar to splitting a big goal into smaller and achievable ones. The best benefit of this strategy is that when you achieve small successes in your short-term challenges, your motivation levels will remain undiminished.

6. Learn to be patient

Your saving habit will not get you immediate benefits. You should patiently wait for tasting the benefits of this habit. In short, the dictum, "patience is the best virtue," is all the more true when the question of enjoying the benefits of your saving habit arises.

Not only that, practicing the saving habit itself involves a lot of patience. You must patiently do your research so you can buy the items you need at the best prices. You must also do a proper research for finding the stores that offer better discounts. Similarly, some stores may offer attractive discounts when you purchase a number of items or when you make bulk purchases. You must find them out also for availing those benefits.

You must also wait for announcements of offers, rebates and discounts that are made by stores from time to time. But you must be swift enough to make your purchases before the offers close. Similarly, you must be ready to make bulk purchases when the prices of the items you require come down.

7. Save money by reducing your expenses on transport

If you calculate the expenses you are making towards your transportation and conveyance, you will be amazed to find that the expenses are exorbitant. One of the best ways is to create a car pool so you and your colleagues can travel to the workplace by using a single vehicle instead of multiple ones. Switching to the more affordable public transport is another excellent way to reduce your expenses on transportation. If your workplace is at a distance that you can cover by walking or cycling, you can walk or cycle to your office.

8. Cancel all the subscriptions that you do not use

If you are paying monthly subscriptions that you do not use fully, you must not hesitate to cancel them. For example, networks such as Netflix, Hulu, etc. make announcements in advance about the contents for the upcoming month and this may help you in checking whether you should subscribe for the month or not.

9. Eating out is a wasteful expenditure

Preparing your food at your home will work out much cheaper than eating out. Apart from helping you save money, home-made foods can be healthier for you as well.

10. Save on your utility bills

Opt for only those appliances that help you in saving energy. For example, you get light bulbs that can help in saving electricity. Similarly, if you get solar panels installed, you can spend less on your electricity bills. It is true that installing the solar panels needs some initial investment but it is worth it because the benefits you will derive later will outweigh the initial investment you may have to make.

[David]

It is easy to let loose and spend more money during the summer months especially if your children are home from school. Just because it is summer does not mean you have to splurge. Some of the suggested ways to save money are extremely easy and fun to do. Here are 10 tips that will help you save money this summer without sacrificing your way of life.

Summer Tips - How to Save Money:

1. Dry Laundry Outside - Not only is this a great way to save on your gas or electric but it gets you out of the house.
2. Walk More - Think of all the places you frequently go, are they close enough for you to walk or ride a bike? Not only will walking get you out of the house but you might find other cool places in your area as well.
3. Carpool - Save on gas by carpooling to work or your kids' summer camps. This is especially good if you travel far for work.
4. Pack Lunches- Help cut the cost of eating out by planning ahead and packing yourself a lunch every day.
5. Explore your Area - Visit all of the local free places in your area: library, farms, walking trails, parks, etc.
6. Track your Spending - This is a great way to stay within your budget. Keep track of everything you spend your money on even if it is inexpensive.
7. Grill Outside/ Crockpot - Avoid using your oven and stove to save on your gas and heat.
8. Plant a Garden - Not only is this great for fresh food but it will help alleviate the cost of fruits and vegetables.
9. Staycation - If a vacation is not in your budget this year, don't fret. A vacation doesn't just mean traveling and going to the beach it also is a time for family act ivies. Plan days to just relax and have picnics or go sightseeing.
10. Budget for Activities - Make a list to plan ahead of all the things you would like to do this summer. Budget for those so you know ahead of time how much you will be spending.

Take advantage of these suggestions so that you do not overspend this summer! These tips should help you prepare how to save money this summer without compromising fun.

[fera]

50/20/30 budget rule 'All Your Worth:
The Ultimate Lifetime Money Plan.” The basic rule is to divide after-tax income, spending 50% on needs and 30% on wants while allocating 20% to savings.