Saving Money=Making Money-Think Otherwise?
May 2nd, 2008 by Kaushik Adhikary
 Image via Wikipedia |
I’ve a savings mania from childhood that prompted me to spread the message to the world that saving money is actually the basic strategy that can ultimately make anyone rich in the long run.I strongly advocate this outlook to everyone I chance to meet.
With prices increasing all the time, saving money can be harder and harder to do. Here are some basic solutions so that you can still meet your needs and find ways to trim off your budget for future savings.
1. BUDGET - Make a calculative budget and stick with it.Set aside at least 10% of your monthly earnings as savings for your future, your retirement, your education, your vacation, whatever.Get a planning workbook or budget sheets and jot your daily expenses down on them. Or go to your favorite search engine and type in, “budget planning” and you can find hundreds of sites with articles, free downloads, tips, ebooks and other resources to help with your budget setup and follow up.
2. PLAN AHEAD - Make sure to plan ahead for emergencies and the unexpected event and put aside contingent funds for rare break down of your home appliances,car,motor cycle, or garage door malfunction and so on. Even if you can afford to set aside only $50 or so a month, it’ll work and better place it in an account and earmark it for those purposes only. Then when things go wrong, and nothing’s working on your favor - you’ll be better prepared.
3. NON-MONTHLY ITEMS - Work out a monthly payment plan for items that you don’t pay on a monthly basis and set this up in your regular monthly budget. For instance,items like annual home owner or renter insurance, quarterly water bills and automobile insurance payments and annual trash bills,would normally be a big headaque for you if you are on annual payment plan. So if you add up those annual expenses and divide them by 12,you’ll work out your monthly figuare.So why not put them into your bank account for those purposes. This way, when the bills hit, you won’t be in your most embarassing situation next time.
What works best for you , in place of multiple savings accounts for each company owed, is to use index cards and one savings account. Create one index card for each bill. Then simply mark amount you’re setting aside on the card and deposit it into your savings account.Try to keep the index cards with you alongside the savings passbook to remind you what the balance you need to cover. The total of all your index cards should be equal to the balance in your savings account.
So next time you get paid, take three giant steps forward. Grab your index cards, follow your budget and invest in yourself and your future.
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