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Is it necessary to save money if you earn a lot? Check out some tips to save money.

Ever since the days of yore, saving has been a habit and more than that an interest. No matter where you stand in your financial journey, you need to know that it is possible for all to turn their financial life around. Sometimes we stand clueless, thinking about where to begin and how much to start with. All it takes is that first step in the right direction, and you will have things moving in your favor. Here, we have some tips on how to start saving money today.

Is it necessary to save money if you earn a lot? Check out some tips to save money.

  1. Move bank accounts.

You must take advantage of perks and earn more interest. Research some of newest banking offers out there. Some banks offer sign-up bonuses simply for opening an account and setting up direct deposit. Some offer attractive interest rates to new customers. Check out for yourself.

  1. Start selling and give up collecting

Don’t collect items of questionable value. If you have collected items, you can start selling them now and use those funds for some worthy financial goals.

  1. Be creative and make your own gifts, quit buying stuff from the store.

If you want to save money and at the same time give generously, creating your own homemade gifts is a good idea to accomplish both the goals. Be creative and you can make just anything at home quite easily and inexpensively.

Do not forget to include a personal handwritten note with the gift. It makes the other person feel special to see your devoted attention.

  1. Make a shopping list and stick to it.

Shop only what you need and the items that are on your list. When you go to the market with no idea to your mind, you end up making impulse buys and unplanned purchases and while saving you just can’t afford this. So, next time you move out to buy, make sure you have a list and stick to it strictly.

  1. Try to avoid going out.

When you go out to eat or out of the town, it completely destroys both your food and entertainment budget. So, it is cheaper to stay in with friends and come up with your own entertainment. Invite them over, party hard and do a lot of saving.

  1. Avoid fast food.

Instead of eating fast food or picking up some ready made dinner when you get home, try to make some simple and healthy replacements. An hour spend in preparation on weekend can leave you with a lot of cheap and easy dinner. Put things into freezer for the coming days

  1. Quit smoking, tobacco.

Please drop this habit. Smoking is not only expensive, but potentially deadly as well. If you want to add years to your life and save money, the first step is to stop smoking altogether. Try some of the many anti-smoking products available at various stores.

  1. CFLs or LEDs

Energy-efficient lights may cost a bit more initially, but they have a much longer life. Furthermore, they use far less electricity. CFLs, use a quarter of the energy of incandescent bulbs. They last for years.

  1. Buy quality stuff that will last.

Saving doesn’t mean buying cheap items and then buying them over and over again because they do not last long. It’s better to do a bit of research when you buy a new appliance. A reliable, energy-efficient one might cost you quite a bit now, but if it continually saves you energy and lasts for 15 years instead of five, you’ll save significant amount of money in the long run.

  1. Follow the 10-second rule.

Whenever you decide to buy certain item, pick it up and add it your cart stop for 10 seconds and ask yourself why you’re buying it. Think whether you actually need it or not. If you can’t find a good reason, put the item back. This saves you from impulse buys on a regular basis.

If your colleagues live nearby, both of you will be able to benefit by carpooling to work. Or perhaps your spouse works nearby, use the same car and drop them to their destination. Doing so could save money as well as wear and tear on both of your vehicles.

11. Buy in bulk.

The items that you use on daily basis and that do not perish can be bought in bulk. For example, we buy trash bags, laundry detergent in the largest packages we can find. This cuts down on their cost per usage by quite a bit and adds up to significant savings.

Steps to be followed-

  • Make a list of your expenses

The first step is to figure out how much you spend. So, keep track of all your expenses. Right from the morning coffee, newspaper to everything that you buy. Account for every penny. Categorize them and estimate your expenditures.

  • Make a budget

Once you have estimated your monthly expenditures, organize your recorded expenses into a workable budget. It should outline how your expenses measure up to your income. Now, plan your spending and limit overspending.

  • Now make a plan on saving money

You must try to put away at least 15 percent of your income as savings. If your expenses are high and you can’t save that much, cut back. Identify non-essential items that you can spend less on, such as entertainment.

  • Set a goal

Start by thinking of a target, you reason for saving money. It can be anything from a down payment for a house to a vacation. Now, draw a plan on how long it might take you to save for it.

  • Choose your priorities

After your expenses and income, your goals have the biggest impact on savings. Always remember long-term goals. Prioritizing goals can give you an idea of where to begin saving. For example, if you know you’re going on a vacation in the near future, you could start putting money away for one.

  • Choose your account

Consider using deposit accounts: regular savings account, High-yield savings account. The ones which have higher interest rate than a regular savings account or are tax efficient.

  • Check every month

When everything is set watch your savings grow.

 

Updated: August 4, 2017 — 4:00 pm

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