Income not spent or putting aside in a bank or pension plan
and whole idea of saving is to reduce the expenses. The part of a person's
income that is spent on mortgage loan repayments is not spent on
present consumption is also kind of savings.
Money saving tips:
Kill your debt first. Simply calculating how much you
spend each month on your debts will illustrate that eliminating debt is the
fastest way to free up money.
Keep a
record of your expenses. What you save falls between two activities and their difference: how
much you make and how much you spend.
Trim your expenses. Take a good, hard look at your spending records after a
month. Depending on how much you need to save, however, you may need to make
some difficult decisions. Think about your priorities, and make cuts you can
live with.
Set
savings goals. For
short-term goals, this is easy. If you want to buy a video game, find out how much it costs. For
long-term goals, such as retirement, you’ll need to do a lot more planning (and
you’ll also need to figure out how investments will help you achieve your goals.
Stop using credit cards. Pay for everything with cash
or money orders. Don't even use checks. It's easier to overspend when you're
pulling from a bank or credit account because you don't know exactly how much
is in there.
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