How to Save Money (For Starters)
Having a savings nowadays is essential to have financial stability, to have a secure future. According to research, millennials prioritize more on investing to things that depreciate in value over time like for example gadgets, clothing, shoes and bags. Yes, fashion and being updated to the latest gadget is also a nice investment but we should all know when to stop or know our limitations. Our world today is very fast, it evolves every now and then we should all be prepared.
In this blog, I will show you 5 ways on how to save money like a pro.
Know Your Priorities
- This is the very first step, most of us here is a student or just starting up on the adult life. We should identify and weigh the things we would like to spend to. A good case scenario is those working people that had just recently received there monthly wage. Most shopping malls have a good strategy wherein they would offer a sale on their products and services for a big discount during the day where most employees got their salary. Most of the salary men would tend to buy something during that day, two reasons; because they have money and second is they could get the items they wanted to buy for a much lower price. A good strategy and marketing skills. And at the end of the day, we forgot the top things we should alot our money first like rental obligations, mortgage, insurance, utility bills to name a few and ended up paying that after the due date ( most of those has a surcharge if they weren't paid before the due date).
You Should Allocate an Emergency Fund
- The main purpose of the fund is tohave a financial security by having a safety net of funds that can be used to meet emergency expenses as well as reduce the need to draw from high interest debt options, such as credit cards or unsecured loans .The minimum amount of emergency fund is that it should be three times the amount of your montly salary or allowance. We should always do this because we don't know when we needed money the most. Emergency situations include hospitalization, sudden moves, cost of living increases, major household repair, and unexpected travel.
Set a Daily Budget
- First you should have an idea to what are your expenses for a day (fare, food, load, and etc.). Setting up a budget for a day should always be based on your capacity or your weekly or monthly income or allowance. We should not go beyond that because the tendency is that there will be days specially at the end of the week or month that we would be short of money and it's a big NO when you want to save up.
Have a Record of Your Expenses
- You should be on track of your daily, weekly, or monthly expenses. It is kinda simple but it really can help you a lot. The problem is that people always complain or wonder where all their money went. Yousshould always stick to your daily budget as to not overspend on things we don't necessary need.
Know Where to Put your Hard Earned Savings
We have a lot of ways on that, the most famous step is you put your money to a banking institution. It is a great deal because banks offer a yearly interest on your money which is okay if you are serious enbough on saving that you won't touch your savings if not necessary.
Time deposit is also a good choice, you can get a much higer interest from the bank if you chose to get this rather than the conventional savings account. The downturn of this is that you can only get or withdraw the money on the date you wrote on the form. You can still withdraw thou even if it's not on the date you desired to withdraw it but it has a penalty charge.
Investments (insurance or stock market). Filipinos are new to this kind of scheme but it has a large potential because your money works for you. It's kinda risky to invest on stocks because market fluctuates but according to business journals and articles that was published, Philippines have the potential to have a business grade status and it is advised to invest this time.Let your money work for you.
THERE YOU GO, 5 EASY STEPS TO SAVE MONEY. I HOPE IT WILL HELP YOU ON SAVING FOR YOUR FUTURE.
*photo credit:
- http://moziru.com
- financialtribune.com
- aboveintelligent.com
- cdn3.iconfinder.com
- www.canstockphoto.com