Saturday 9 March 2013
Saving money is one of those tasks that it is so much easier to talk about than to accomplish. It is much more than just spending less money (although only this part can already be difficult). How much money can you afford to save, where will you put it, and how can you make sure it stays there? Here's how to set realistic goals, keep your spending under control and get more for your money.
Eliminate your debt first. Just calculate how much you spend each month to pay your debts to understand how the removal of these is the fastest way to free up money. Once that money is freed from debt payment, it can easily be intended for the savings. In addition, the faster you pay off the debt, the less interest you pay, and that money can be saved.
However, if you choose to start saving before they fully repaid your debt, lean on consolidating your debts in order not to pay as much interest.
The only saving saving money that should take precedence over out of debt is to create an emergency fund (setting aside enough money for that if you lose your income, you can survive for 3 6 months). If you do not already have an emergency fund, you should start contributing immediately.
There are also many applications that you can download to your phone that will help you keep track of your expenses.
Can you move into an apartment or a house cheaper? Can you refinance your mortgage?
Can you save money on fuel, or abandon altogether your car? If your family has multiple cars, you can reduce to one?
Can you get a better price on your insurance? Call around and make sure you get the best price possible. Consider also choose a higher deductible.
Do your shopping at the discount clothing. These items declawed or surplus is sold at a price significantly reduced and could save you 50% discount.
Can you drop your phone line and just use your cell phone or save money by calling on the Internet for free with services such as Skype?
Can you live without cable TV or satellite?
Can you reduce your electricity bills?
Can you limit your meals outside? Buy food in bulk? Start using coupons? Cook more often at home?
You might be able to save a lot of money on your shopping.
Reassess your savings goals. Subtract your expenses (the ones without which you can not live) from your net salary (after tax). What is the difference? This amount meets your savings goals? Let's say you have decided that you can probably get away with € 150 per month, and the amount of your paycheck is 230 € per month. That leaves you 80 € to set aside. If there is absolutely no way to meet your savings goals based on your budget, take a look at what you want to save and make a cut in the less important things or adjust in time . Maybe you can put the purchase of a new car for another year, or maybe you do not really need a big screen TV.
Make a budget. Once you've managed to balance your income into your savings goals and spending, write a budget so that you know each month or at each paycheck how much you can spend on something specific or class. This is particularly important for expenses which tend to fluctuate, or where you know it will be particularly difficult to restrict you. (For example: "I would spend only 30 € per month in movies / chocolate / coffee, etc..")
Stop using credit cards. Pay any cash or transfers. Do not even use checks. It is easier to overspend when you pull a bank account or you use a credit because you do not know exactly where you are. If you have money, you can see your cash down. You can even separate the predetermined amount of cash allocated for each expense with a label or keep separate in jars for each expense (eg a bundle / jar for coffee, one for gasoline, the other for various purchases). When you withdraw money from a pot for this particular expense, you will see how much remains and you will also see where you are compared to your limit.
If you need to have credit cards, but you do not want to be tempted to use them on a daily basis, you can restrict this part of your portfolio with a note or picture to remind you of your savings goals .
Credit cards are not inherently evil, it's you control. If you use them responsibly (ie paying them every month), you can take advantage. But the reason most credit card companies make money is that people end up spending money they do not have. Unless you're one of those people who can religiously pay the balance in full each month, you'd better give up the promotions that credit card companies use to entice you (discounts, airline miles and so on).
Open a savings account generating interest. It is much easier to keep track of your savings if you separate your money. You can also usually get more interest on savings accounts as current accounts (if you get any interest on your current account). Consider the options high interest rates such as mutual funds or money market accounts for longer savings goals.
Pay yourself first. Savings should be your priority, do not just say that you will save what you have left at the end of the month. Post your savings account (or your piggy bank) as soon as you get paid. A simple and effective way to start saving is to simply deposit 10% of every check into a savings account. If you receive a check or a sum of money, say € 710.68 move the decimal point one place to the left and go deposit that amount: € 71.07. This works well and requires little attention after several years, you have a tidy sum on your savings.
You can set up an automatic transfer from your checking account to your savings account.
Many employers allow you to deduct savings from your salary. The money is deposited directly into your savings account so you do not even have to ever see your paycheck.
You can also make investments for retirement by drawing directly into your salary, you can benefit from tax cuts.
Do not get discouraged and do not give up. You may think you'll never get rich, but can become a millionaire if you set an aggressive savings and you were standing there. You might be surprised how putting money aside can be something much better than what you could buy with short-term savings. Good things often take time, and the more you save, the more interest you make on your savings!
Always overestimate your expenses and underestimate your income.
If you can you can share things you, food to living space or your appliance, try to do so. Everything comes when it remains close friends, and soon you'll find that your friends do the same, and everyone will benefit.
Take care of your belongings. In this way, you will have less need to replace them. Also, do not replace a item before it is absolutely necessary. For example, just because the engine of your electric toothbrush fails does not mean it does not work as toothbrush. Continue to use, and when you're ready, go buy a new one or check the warranty.
You have a hobby? Adjust your budget. One aspect of saving is that if you have a hobby like model airplanes, scrapbooking, off-road motorcycle, scuba diving, etc.., You must define a rule lasts and strict about what you allow yourself to spend on your hobby, and linking it to your savings. For example, if you buy a pair of riding gloves to € 45, another savings of € 45 will go to your savings. You are determined to save? Try doubling your matching funds! These savings plans will do two things: save money regularly and quickly, and you really show how much you spend on your hobby, when it costs you twice as much.
If you receive an unexpected sum of money, put all or most of it in your savings, but continue to regularly set aside the amount of your savings. And you reach your savings goals faster.
Make your purchases with cash in notes, not with exact change, and still save money. Use a piggy bank or jar for your coins. Coins may seem insignificant, but accumulated over time, they can help you save. When you redeem your coins, ask to be paid by check so you are not tempted to spend your money so recovered.
Most people can save something regardless of their income. Start saving a little help to build the habit of saving. Even saving as little as € 5 per month you will learn that you do not need as much money as you think.
If you can not bring yourself to destroy all your credit cards at least freeze. Put them in a container, fill it with water and place it in a freezer. In this way, if you feel the urge to use the credit card, you must wait until the ice melts, and during this time you can come to reality and realize that you do not really need to buy what you want to buy.
If you are paid about the same amount and evenly, it will become easier to establish your budget over time. If you have a variable income, it will be difficult to anticipate your expenses, because you never know when will be the next time you get paid. List your budget categories in order of importance and fill the most important first. Play safely assume that it will take some time before you get back the money.
Use affirmations. For example, repeat this affirmation to yourself until it is obvious: the debt is not an option.
Enjoy the simple pleasures of life. During the Great Depression, people were having fun again, but with leisure cheaper. Children were racing soapbox, adolescents were dance competitions, and everyone played Monopoly, did puzzles, read and listened to the radio. People gathered to discuss philosophy or to pray, play poker or doing embroidery, playing a musical instrument or dancing. At that time, it was a little imagination and ingenuity, but it gave them a lot of fun without hanging at the mall, and you can do that too. Most friendships and alliances formed during the Great Depression on the basis of these activities have stood the test of time.
Try to find at least a penny on the ground every day. Put the money you find in a jar and see how fast it adds up!
Even if you really want something, ask yourself if you really need? Most of the time, this will be a big "NO".
If you are spending in your circle of friends, you may need to write a list of excuses ready to explain why you can not go out with them all the time.
Do not go to the "window shopping" with money on you. You will not be tempted to spend money you can not afford to lose. Make purchases only with a predetermined shopping list.
After a long week of work, you may want to offer a little luxury, you are saying "I deserve this." Remember that the things you buy are not gifts for yourself, it is trade, goods for money. Say: "Of course I deserve it, but I afford it? If I can not afford it, I'm still a worthy person, and I still deserve to reach my savings goals!"
Unless you're really in a desperate financial situation (as in the brink of expulsion and your three children starving) do not try to cut corners with health-related costs. Basic preventive care for yourself, your family and your pets could cost you € 60 for a visit to the doctor or € 30 drugs today, but help defer cause problems expensive and give you a blood ink.
If you do not ruin your life if it did not work this time. Just try to do better the next time you get paid.
Eliminate your debt first. Just calculate how much you spend each month to pay your debts to understand how the removal of these is the fastest way to free up money. Once that money is freed from debt payment, it can easily be intended for the savings. In addition, the faster you pay off the debt, the less interest you pay, and that money can be saved.
However, if you choose to start saving before they fully repaid your debt, lean on consolidating your debts in order not to pay as much interest.
The only saving saving money that should take precedence over out of debt is to create an emergency fund (setting aside enough money for that if you lose your income, you can survive for 3 6 months). If you do not already have an emergency fund, you should start contributing immediately.
Set savings goals. For short-term goals, this is easy.
If you want to buy a video game, know how much it costs, if you want to buy a house, determine how much capital you will need. For long-term goals such as retirement, you'll need to make a planning much deeper (how much money you need to live comfortably for 20 or 30 years after they stopped working), and you will also need understand how investments will help you achieve your goals.Set a schedule.
For example: "I want to be able to buy a house in two years." Set a specific date for achieving your short-term goals, and make sure the goal is attainable within that time. If this is not feasible, you will only discourage you.Calculate how much you need to save each week,
each month or pay to reach each of your savings goals. Take each thing you want to save and calculate how much you need to start saving now. For most savings goals, it is best to save the same amount each period. For example, if you want a contribution of € 20,000 on a house for 36 months (three years), you'll need to save about € 550 per month every month. But if the amount of your payroll checks is € 1,000, it could be that this is not a realistic goal. Then adjust your time until you get to an affordable amount.Keep track of your spending.
The amount you save falls between two activities and their difference: how much you earn and how much you spend. Since you have more control over how much you spend, it's wise to take a critical look at your expenses. Note all what you spend your money for a few weeks or a month. Be as specific as possible and try not to leave out small purchases. Assign each purchase or expenditure a category such as: rent, car insurance, car payments, fuel, phone bills, cable, utilities, food, entertainment, etc..Keep a small notebook with you at all times.
Make it a habit to write down
all the expenses and keep receipts.Sit once a week with your small notebook
and your documents and invoices. Record your expenses in a large notebook or a spreadsheet.There are also many applications that you can download to your phone that will help you keep track of your expenses.
Make a cut in spending.
Ask a critical look at the record of expenditures after one or two months have elapsed. You'll probably be surprised when you look retrospectively in your list of expenses: 30 € at the glacier € 10 parking ticket? You will probably obvious savings you can make. However, depending on the amount you need to save, you may need to make difficult decisions. Think about your priorities and make cuts you can live with that. Calculate how much those cuts will save you per year, and you'll be much more motivated to save every penny.Can you move into an apartment or a house cheaper? Can you refinance your mortgage?
Can you save money on fuel, or abandon altogether your car? If your family has multiple cars, you can reduce to one?
Can you get a better price on your insurance? Call around and make sure you get the best price possible. Consider also choose a higher deductible.
Do your shopping at the discount clothing. These items declawed or surplus is sold at a price significantly reduced and could save you 50% discount.
Can you drop your phone line and just use your cell phone or save money by calling on the Internet for free with services such as Skype?
Can you live without cable TV or satellite?
Can you reduce your electricity bills?
Can you limit your meals outside? Buy food in bulk? Start using coupons? Cook more often at home?
You might be able to save a lot of money on your shopping.
Reassess your savings goals. Subtract your expenses (the ones without which you can not live) from your net salary (after tax). What is the difference? This amount meets your savings goals? Let's say you have decided that you can probably get away with € 150 per month, and the amount of your paycheck is 230 € per month. That leaves you 80 € to set aside. If there is absolutely no way to meet your savings goals based on your budget, take a look at what you want to save and make a cut in the less important things or adjust in time . Maybe you can put the purchase of a new car for another year, or maybe you do not really need a big screen TV.
Make a budget. Once you've managed to balance your income into your savings goals and spending, write a budget so that you know each month or at each paycheck how much you can spend on something specific or class. This is particularly important for expenses which tend to fluctuate, or where you know it will be particularly difficult to restrict you. (For example: "I would spend only 30 € per month in movies / chocolate / coffee, etc..")
Stop using credit cards. Pay any cash or transfers. Do not even use checks. It is easier to overspend when you pull a bank account or you use a credit because you do not know exactly where you are. If you have money, you can see your cash down. You can even separate the predetermined amount of cash allocated for each expense with a label or keep separate in jars for each expense (eg a bundle / jar for coffee, one for gasoline, the other for various purchases). When you withdraw money from a pot for this particular expense, you will see how much remains and you will also see where you are compared to your limit.
If you need to have credit cards, but you do not want to be tempted to use them on a daily basis, you can restrict this part of your portfolio with a note or picture to remind you of your savings goals .
Credit cards are not inherently evil, it's you control. If you use them responsibly (ie paying them every month), you can take advantage. But the reason most credit card companies make money is that people end up spending money they do not have. Unless you're one of those people who can religiously pay the balance in full each month, you'd better give up the promotions that credit card companies use to entice you (discounts, airline miles and so on).
Open a savings account generating interest. It is much easier to keep track of your savings if you separate your money. You can also usually get more interest on savings accounts as current accounts (if you get any interest on your current account). Consider the options high interest rates such as mutual funds or money market accounts for longer savings goals.
Pay yourself first. Savings should be your priority, do not just say that you will save what you have left at the end of the month. Post your savings account (or your piggy bank) as soon as you get paid. A simple and effective way to start saving is to simply deposit 10% of every check into a savings account. If you receive a check or a sum of money, say € 710.68 move the decimal point one place to the left and go deposit that amount: € 71.07. This works well and requires little attention after several years, you have a tidy sum on your savings.
You can set up an automatic transfer from your checking account to your savings account.
Many employers allow you to deduct savings from your salary. The money is deposited directly into your savings account so you do not even have to ever see your paycheck.
You can also make investments for retirement by drawing directly into your salary, you can benefit from tax cuts.
Do not get discouraged and do not give up. You may think you'll never get rich, but can become a millionaire if you set an aggressive savings and you were standing there. You might be surprised how putting money aside can be something much better than what you could buy with short-term savings. Good things often take time, and the more you save, the more interest you make on your savings!
Advice
Whenever you want to buy something, think about why you save and the approximate percentage of your savings that this thing costs, you often do not buy.
Always overestimate your expenses and underestimate your income.
If you can you can share things you, food to living space or your appliance, try to do so. Everything comes when it remains close friends, and soon you'll find that your friends do the same, and everyone will benefit.
Take care of your belongings. In this way, you will have less need to replace them. Also, do not replace a item before it is absolutely necessary. For example, just because the engine of your electric toothbrush fails does not mean it does not work as toothbrush. Continue to use, and when you're ready, go buy a new one or check the warranty.
You have a hobby? Adjust your budget. One aspect of saving is that if you have a hobby like model airplanes, scrapbooking, off-road motorcycle, scuba diving, etc.., You must define a rule lasts and strict about what you allow yourself to spend on your hobby, and linking it to your savings. For example, if you buy a pair of riding gloves to € 45, another savings of € 45 will go to your savings. You are determined to save? Try doubling your matching funds! These savings plans will do two things: save money regularly and quickly, and you really show how much you spend on your hobby, when it costs you twice as much.
If you receive an unexpected sum of money, put all or most of it in your savings, but continue to regularly set aside the amount of your savings. And you reach your savings goals faster.
Make your purchases with cash in notes, not with exact change, and still save money. Use a piggy bank or jar for your coins. Coins may seem insignificant, but accumulated over time, they can help you save. When you redeem your coins, ask to be paid by check so you are not tempted to spend your money so recovered.
Most people can save something regardless of their income. Start saving a little help to build the habit of saving. Even saving as little as € 5 per month you will learn that you do not need as much money as you think.
If you can not bring yourself to destroy all your credit cards at least freeze. Put them in a container, fill it with water and place it in a freezer. In this way, if you feel the urge to use the credit card, you must wait until the ice melts, and during this time you can come to reality and realize that you do not really need to buy what you want to buy.
If you are paid about the same amount and evenly, it will become easier to establish your budget over time. If you have a variable income, it will be difficult to anticipate your expenses, because you never know when will be the next time you get paid. List your budget categories in order of importance and fill the most important first. Play safely assume that it will take some time before you get back the money.
Use affirmations. For example, repeat this affirmation to yourself until it is obvious: the debt is not an option.
Enjoy the simple pleasures of life. During the Great Depression, people were having fun again, but with leisure cheaper. Children were racing soapbox, adolescents were dance competitions, and everyone played Monopoly, did puzzles, read and listened to the radio. People gathered to discuss philosophy or to pray, play poker or doing embroidery, playing a musical instrument or dancing. At that time, it was a little imagination and ingenuity, but it gave them a lot of fun without hanging at the mall, and you can do that too. Most friendships and alliances formed during the Great Depression on the basis of these activities have stood the test of time.
Try to find at least a penny on the ground every day. Put the money you find in a jar and see how fast it adds up!
Even if you really want something, ask yourself if you really need? Most of the time, this will be a big "NO".
Disclaimers
If you are spending in your circle of friends, you may need to write a list of excuses ready to explain why you can not go out with them all the time.
Do not go to the "window shopping" with money on you. You will not be tempted to spend money you can not afford to lose. Make purchases only with a predetermined shopping list.
After a long week of work, you may want to offer a little luxury, you are saying "I deserve this." Remember that the things you buy are not gifts for yourself, it is trade, goods for money. Say: "Of course I deserve it, but I afford it? If I can not afford it, I'm still a worthy person, and I still deserve to reach my savings goals!"
Unless you're really in a desperate financial situation (as in the brink of expulsion and your three children starving) do not try to cut corners with health-related costs. Basic preventive care for yourself, your family and your pets could cost you € 60 for a visit to the doctor or € 30 drugs today, but help defer cause problems expensive and give you a blood ink.
If you do not ruin your life if it did not work this time. Just try to do better the next time you get paid.
