EIGHT SIMPLE WAYS TO SAVE MONEY

Sometimes, the hardest thing about saving money is just getting started. It can be difficult to figure out simple ways to save money and how to use your savings to pursue your financial goals.

This step-by-step guide to money-saving habits can help you develop a realistic savings plan.

1.      Record your expenses

Many people spend without knowing what they spend on. They just spend! The first step to saving money is to figure out how much you spend. Keep track of all your expenses such as recharge cards, newspapers, groceries, fuel, transport fares, books, etc. The idea is that, you gotta account for every penny.

2.      Make a budget

Once you have an idea of what you spend in a month, you can begin to organize your recorded expenses into a workable budget. Your budget should outline how your expenses measure up to your income-so you can plan your spending and limit overspending.

3.      Plan on saving money

Now that you’ve made a budget, create a savings category within it. Try to put away 10-15 percent of your income as savings. If your expenses are so high that you can’t save that much, it might be time to cut back.

4.      Choose something to save for

One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for whether a house, land, car, phone, laptop, school fees, vacation, etc. in essence, you must have a reason for saving.

5.      Decide on your priorities

You must know what is most important. Wisdom is getting those things which are most relevant to you especially when you don’t have enough money to get everything on your list.

6.      Pick the right tools

If you must save, you’ve just got to opt for the most effective scheme. Since most people don’t like holding the cash they save for fear of spending it, a savings account might prove to be an effective tool. There are many others such as joining a cooperative, or using the traditional means such as locking it in a clay or wooden chest.

7.      Make saving automatic.

This mainly involves the banks. You can choose when, how much and where to transfer money to, or even split your direct deposit between your checking and savings accounts. Automated transfers are a great way to save money since you don’t have to think about it and it generally reduces the temptation to spend the money.

8.      Watch your savings grow.

Check your progress every month. Not only will this help you stick to your personal savings plan, but it also helps you identify and fix problems quickly.

These simple ways to save money may even inspire you to save more and hit your goals faster.