Once in awhile, you might feel your wallet or purse shrinking or feeling very empty. You will then find yourself thinking, “Where have all my money gone?” You may or may not recall buying items that may be a little bit unneeded or unnecessary. So here’s a guide on how you can save up and try not to spend on things that you do not need.


1. Need vs. Want
This is an overused phrase that you might have heard a lot of times before. However, it is good if you can differentiate between what you want and what you need. What you want does not necessarily mean that you will use it to the point that it becomes a necessity in your life.

2. Save first, spend later
Whether you are working or receiving pocket money, always save at least 10% of the amount that you receive. Say for example, you have $200, set aside $20 and deposit it in the bank. It might be difficult to control your spending within the amount that you have, but as you go along, it get easier and you might want to try increasing the percentage that you want to save.

3. Unnecessary Reads
Are you the type to follow and buy the latest fashion magazine once it hits the stores? If so, you might want to rethink about buying those magazines. Once the trends has passed, the magazine would just be lying on the shelves unused and unread. If you need to find out more on the past and current trends, you can just go online and Google the information that you need.

4. Set a Goal
If you have a specific amount of savings in mind, figure out how much you would need to save every time in order to reach that goal. For example, “I wish to have $5000 in my bank account by June 2014”. Set a time frame and make sure that your goals are actually attainable within that time frame itself.

5. Set a budget
Whenever you shop, you always find so many items that you wish to buy and own. You might even overshoot the budget that you had set aside for your shopping. To counter that, create a list of the things that you want to buy and also set your budget. Compare the prices between shops before deciding on the chosen item.

The steps might be difficult and may take some time getting used to. But the end results are worth it. It’s hard if you want to just stop spending all of a sudden so let’s take it one step at a time.



Amirah

Labels: Amirah, How to save money, money, savings, self-improvement