5 Tips of Saving Money

Saving, or investing regularly, often done for various purposes. By setting your money aside on a regular basis, then the collected money can be very useful. Saving money activity in the personal financial planning is the act of reserving or saving some of our money for future use, either for use in an emergency. It also to give us some pleasure, to invest, for use in times of crisis, to use in our retirement, etc.

Below are 5 Tips of Saving Money compiled from various sources:

1. Spend less

This advice seems obvious, and this is the first tip to consider if you really want to save money.

One method that can help us to implement this advice, is to develop a personal budget or family budget. Knowing of which parts that we spend more, and discuss whether we can spend less on them, or in any case put them out of our budget. Things that could spend our money quite lot are such as subscriptions to newspapers or magazines that do not always read, always buy in cafes, etc.

Finding ways to spend less may also involve: purchase some used instead of new, eating at home instead of eating out, always look for offers or discounts (always ensuring that the offer or discount to be real), take our time and look always for places where you can buy the products at the lowest price (for example, compare prices online), buy wholesale or in quantity (and thus take advantage of quantity discounts, etc.).

Once we are aware of where or what we are spending our money, and we are constantly looking for ways to spend less, we will become experts, and actually begin to save money.

2. Consume or use less

This idea is a variation of the first. It is to eat less or use the products or services that we use, for example, we try to use less shampoo, use less toothpaste, use less detergent, use less electricity or energy (eg. turn off when we do not need lights, buying energy saving light bulbs, turning off the television or computer when you're not using), consume less water (for example, arranging the droppers, showering instead of bathing, etc.).

Consume or use anything less might not mean much as savings. But if we add all the little savings that we can do, we could actually get to save money.

3. Making a budget

The budget will allow us to identify areas or items where we are spending too much, or those in which we could reduce costs or, in any case, removed from our budget. Also, we will know the difference between revenues and expenditures, and thereby to determine an amount that we can set aside as savings.

4. Book an amount as savings

It is to acquire the habit of putting aside each month of a certain amount in a savings account. We can begin to allocate a small amount, and gradually increase the quantity as our revenues increase. It is recommended that represents at least 10% of our total monthly income.

It is advisable to deposit that amount in a deposit account at the bank, so we have it in a safe place, we do not feel tempted to take money out of it and, incidentally, we can gain some interest.

5. Avoid debt

Some debts could be helpful as a mortgage debt. Or debt needed to build a business. But to save money, we always strive to have as little debt as possible.

The first debt to be avoided is generated by the use of credit cards, usually higher-cost debt that has (the one with higher interest rates). We should note that credit cards are to be used in an emergency or to any opportunity that presents itself, and not to be used constantly in everyday purchases.

The use of credit cards may give momentary satisfaction, but then can bring big problems. It is advisable to cut off all credit cards, or at least keep only one, which present the lowest cost and most convenient payment terms. So we could saving money on our personal financial planning.

Happy investing :)

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