5 Ways of Money-Saving Tips

All of us know that saving money is important but knowing is different from doing.
Some people get inspired when they start to save money but after few weeks they begin hating it.
If you have some difficulties in saving money then here are some money-savings tips that could help you.

1. Save First Then Spend The Rest

Once you receive your salary immediately set a side a portion of money and directly put it on your savings account. So that you can now spend the rest of your salary without thinking that you might expense all of your money.

This is what we call paying yourself first. This is easier and more fun to do. You must try it because it's really effective.

2. Make Saving Money Automatic

There's several ways on how do you make your savings automatic. For example, you go to the bank that handles your company payroll account and ask if they have automatic savings plan. If they have you can get one. This means that when your payday came, the bank automatic deduct a fixed amount and they deposit it in your savings account.

3. Make your savings not easily accessible

Make your savings account inconvenient for you to get a cash. You can simply start by getting a pure passbook bank account. In this case you can't withdraw cash easily.

There still some ways like having a bank savings account that only allows one to three over the counter withdrawals a month but unlimited deposit transaction.

Also for us, the Filipinos, we have the paluwagan system. Paluwagan system also provides the same inaccessibility of your savings. But in paluwagan system you need to make sure that your co-members are trustworthy and they are really dedicated to pay their dues.

4. Always use cash

Always use cash because you will be more aware of your budget. Using cash also avoid you from having debts. Also using cash can help you to buy the things you need not the things you just want. Simply do this tip then you end up with a savings account that you don't have to touch for you to pay debts.

5. Set a benchmark and a reward for saving money

Set a reward for yourself when you reach your desire amount for your savings for you to be motivated than having a reason like believing in the saying that you must save money for rainy days for you to encourage saving money.

For example of setting yourself a reward. You allow yourself to spend 2000 pesos whenever you increase your savings 10000 pesos. With this reward of yours you can avoid unnecessary spending.

Let's Review

We talked about on how you can save money. To sum it all up when your having a hard time saving money, first you pay yourself first, next find a way to make your savings automatic and be sure that your savings is not easy to access. Then always use cash and avoid having debts for you to spend your money without thinking of your savings. Lastly, giving yourself a reward for your success at saving money.

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