7/24/2018

The Essential Guide to Save Money Effectively

We all know that saving money is a good idea, essential, some would say, but it can be truly difficult to make a start, especially if you’ve never tried to save before. However, if you can put money aside each week or month, it can make life a lot easier in the long term. Here are some useful pieces of advice about how to save money and change your life for the better.

Have A Goal
Saving money becomes a lot easier if you have a goal to aim for. Otherwise, you are just putting money aside for no tangible reason, and that can mean that it is tempting to dip into your savings every now and then, which then pushes you back a number of steps. You can choose anything to save for, from a new car to a property down payment, a vacation, or a new piece of furniture. Whatever it is, you need to keep that goal in mind, and there should be not only an amount of money associated with it but a timeframe too. Once you have reached your goal, you can then spend the money and find a new goal to start all over again.

What Are Your Priorities?
When you first begin to save you’ll need to look into your outgoings and determine what you can reduce or eliminate altogether. Once this is done, the money that is left after paying your non-negotiable bills is the money you can use to save. How much of that money you put aside will depend on your priorities. For example, if you are saving for retirement but you want to enjoy yourself in the meantime, you might not put that much away in the beginning. Alternatively, if you are saving for something that is much more short term, it may become your priority, and you’ll put more money into that fund.

Get Help
If you’re really struggling to save money on your own, you can look into getting help from a financial advisor. This can be someone in the flesh who you can meet and chat to, or it could be an app or ‘robo-advisor’ such as Betterment that helps you save automatically. Before you decide what you want to use, make sure you research as much as you can to ensure you are picking the right option. Search for Betterment review, for example, and you’ll get all the information you need.

Set Up Automated Saving
It’s easy to set up automated saving when you link your checking and savings accounts. You choose when the money is moved, how much is moved, and where it should go. If you do this on the day you are normally paid, then you won’t even miss the money (and you won’t accidentally spend it) and as the months go on you’ll get more and more used to it not being there. In the meantime, your savings account will be growing substantially. This is an easy way to save, but it is important to be sensible when setting the payments up at the start otherwise you might find that you don’t have enough money in your checking account for everyday essentials.  

No comments:

Post a Comment

Loading...