My world is full of people who start their month like a king and end it like a tramp. There are people who are good at planning their expenses and then, there are people who burn their money as soon as it reaches them. It is a good thing to live life fully and splurge on things that make you happy. However, people must understand the value of money as it is the only thing that comes handy when you are in real trouble. It is important to save and plan ahead.
Are you one of those people who are broke by the end of month? Do you find it difficult to resist from wasting money on things that you hardly use? If yes, we promise, that you will be a little wiser by the end of this article.
How to save money?
Write down your expenses
One of the best ways to plan ahead is to write down your expenses. This will give you a clear idea of how much money you will need to last all month. Once you have the figures in front of you, you will think twice before spending extra because you will know that you have expenses that you have to care of in near future.
Fix a budget
If you want to save money, you must fix a budget in your mind. Do not think of spending your entire salary — let your budget be such that you are left with atleast something at the end of the month. Once you have your budget, you will know exactly how much you can afford to spend and when you should pull your hands back. At first, controlling yourself may seem difficult, but once you develop this habit, you will benefit greatly from it in the long run.
Stay away from credit cards
Credit cards are the bane of this world — they literally compel people to spend more than they can possibly afford. These cards give people the authority to make purchases without actually paying for them. They create an illusion because they postpone your payments. This way people end up buying more thinking they can pay for it later without actually realizing that their credit card bill is already reaching its limit. If you wish to save money, stay away from credit cards.
Define your saving goals
You won’t be inspired to save until and unless you have a goal that you want to achieve. You must save for something that’s important to you — it could be the world trip that you have always wanted to take or that course you have been wanting to register yourself at. You may decide to save to buy your mother a present or for your retirement. The fact is that if you have a goal in mind, you will find yourself automatically driven to save money.
Invest your money
If you think, you are the kind of person who simply cannot resist splurging when you have money in your hand, the best way to save money for you is to invest it somewhere. You could take a loan that requires you to pay a certain sum every month. Likewise, you can also invest in a retirement plan or a systematic investment scheme which will provide secure returns after a couple of years of investment. The bottom line is if you can’t keep yourself from spending money, keep yourself from keeping any extra money.