Getting Started: My Journey towards Saving Money
I was taught about the habit of saving at a young age. Now that I'm an adult, I still continue to save. Saving has been a rewarding experience to me. Because of my savings, I was able to help pay a portion of my tuition in High school when my parents were financially down. I was also able to ease my parents' burden by taking part of my savings instead of asking them for my allowance. So saving for me is filial piety too. Now, I am even planning to help pay for part of the downpayment for my parents' dream car.
Because of all the years of saving, saving money has become my passion. Unfortunately, not all people are successful in terms of saving. They always tell themselves to save, but before long, the money goes to unexpected expenditures.
In the following paragraphs, I present to you some of the things I've learned to save money. I wanted to share these ideas and I hope that you will find these helpful as much as it did to me. You could also share your own tips by commenting on the Comments box below.
First, change your mindset.
Most people commit the mistake of spending first before saving. When the paycheck comes, they buy the things they need and want first. If they have remaining money, then it goes to the bank. However, because of this mindset, people tend to spend more than they should. Don't be like them. When your paycheck comes, decide how much you are going to save first. The rest you could then spend on whatever things you want. By simply changing your way of thinking, it could greatly increase your success in saving. Being able to switch your thinking into "saving mode" is a great big step to easing your financial burden.
But what if you don't have enough money? Think carefully if you really lack the money. Listing down your expenses could be a big help. By listing down your expenses and then categorizing them into groups could help you see where most of your money goes. You could then analyze which part of your expenditures is unnecessary. If your income is greater than you expenses, then you know you are capable of saving.
Making a goal is one way of staying motivated to save. Do you plan to buy a dream house? Start a business? Go on a long vacation? Whenever you are tempted to buy something on impulse, think if the item is worth your money. Also think of your future plans. Does the item you see now is more important than your bigger goal?
There are times when we falter from our plans. We may spend on things that we don't really need. If you happen to commit this error, don't despair. It happens to everyone. Learning the habit of saving takes time and practice. If you continue to adapt financially healthy habits, then you know saving will become easier and easier down the road.
Cut back on your spending.
First the mindset, now the action. This is the fun part. In this phase, your calculator is your best friend. List down all the expenses in a notebook. Total the amount of spending each month. Categorize these expenditures into Food, Entertainment, Utilities, Transportation, and so on. It's up to you what categories you would like to have, this greatly depends on the type of lifestyle you have. Study your list and from there you could learn where most of your money go and how you could cut back on unnecessary spending. Here, you could also decide some lifestyle changes to save more money. Perhaps you could cook at home instead of eating out? Or lessen the number of visits to your favorite movie house. You could walk instead of drive a car, or ride the public transportation instead of driving, whichever is cheaper.
Don't just think about the items' prices. Maybe you prefer buying at a certain supermarket just because the grocery items there are much cheaper. But what if the supermarket is far from your home? Consider the transportation expenses you would incur by going to that supermarket. If it costs you more than you think, perhaps going to the nearby store is the wiser choice (and saves time as well).
Don't be too ecstatic though on saving money! Most people hit the malls every time they've heard of a sale. People also tend to buy in bulk for very cheap items. Ask yourself first if you really need those things. Being able to buy things at a cheaper price doesn't necessary mean that you are saving. Merchants put items on sale to lure you. If you don't need it, then don't buy it, no matter how cheap it is.
There are many different tips found online teaching you on how to save on different things. There are tips on saving electricity, tips on saving gas, tips on saving on grocery items, and so on so forth. Read about the different advice you could find. If you find it too overwhelming, you could first focus on the area where your money goes the most. Below is a list of articles for your reference.
Here's a list of articles on how you could save on specific expenditures.
How to Save Money on Gasoline:
learn how to save gas by following these 66 ways
How to Save Money on Electricity:
72 Ways to Save Money on Electricity Without Spending a Cent
How to Save Money on Groceries:
tips to follow when you stop by the supermarket
How to Lower Your Water Bill:
conserve water and money at the same time
How to Save Money on School Supplies:
tips for parents when buying their kid's school supplies
How to Save Money on Clothes:
be fashionable but thrifty at the same time
How to Save Money on Entertainment:
save money on things such as movies, dvds, concerts, etc.
How to Save Money on Health Care:
take care of your health in a cheaper way
How to Save Money on Vacations:
enjoy travelling without hurting your pockets
How to Save Money on Dates:
be romantic but thrifty at the same time
Being knowledgeable with money matters is essential to saving. Take for example, the bank. Banks are supposed to help us save money. That is what we are taught since we're little. But banks can also be our biggest foe. They could give us many "hidden" charges if we aren't very careful. Different banks has different policies. For example, they give you a penalty if your savings drop below the minimum amount. They could also charge you each time you withdraw ATM from a different bank. Take time to get to know these policies. Learn about their products that help you save money.
Other than banks, there are many other financial institutions that you should take time to study about. Don't just blindly invest your money, get to know more about the institutions where you put your money. There are several books you could refer to learn about these things.
Why you should save
Other people can't see the point of saving. To them, it is important that they could enjoy the money they've worked so hard for. Besides, what's the use of money just sitting in the bank? They want to live life to the fullest. Money is fleeting, and so they might as well spend it now. Yet, life is not as simple as that. There are many unexpected things that could happen. Simple things such as getting your car broken. Or as serious as having a loved one get sick and requiring hospitalization. The unexpected things are things that they hate to think about. Saving gives someone security, a peace of mind. Being in debt is a heavy burden. Saving eases ones life.
Of course, too much of everything isn't good. While spending without saving is a reckless habit, saving too much is also harmful. I've encountered some people who wouldn't buy new shoes, toothbrushes, umbrellas, and other stuff even though their things are already worn-out. Saving should come in moderation, and just like what I've mentioned before, allot a portion of your income for savings, the rest, spend it for your happiness and comfort. There's nothing wrong with spending, as long as you keep it in moderation, and as long as you still have money set aside for emergencies. Enjoy life, but make sure you still have something for the future.
I was taught about the habit of saving at a young age. Now that I'm an adult, I still continue to save. Saving has been a rewarding experience to me. Because of my savings, I was able to help pay a portion of my tuition in High school when my parents were financially down. I was also able to ease my parents' burden by taking part of my savings instead of asking them for my allowance. So saving for me is filial piety too. Now, I am even planning to help pay for part of the downpayment for my parents' dream car.
Because of all the years of saving, saving money has become my passion. Unfortunately, not all people are successful in terms of saving. They always tell themselves to save, but before long, the money goes to unexpected expenditures.
In the following paragraphs, I present to you some of the things I've learned to save money. I wanted to share these ideas and I hope that you will find these helpful as much as it did to me. You could also share your own tips by commenting on the Comments box below.
First, change your mindset.
Most people commit the mistake of spending first before saving. When the paycheck comes, they buy the things they need and want first. If they have remaining money, then it goes to the bank. However, because of this mindset, people tend to spend more than they should. Don't be like them. When your paycheck comes, decide how much you are going to save first. The rest you could then spend on whatever things you want. By simply changing your way of thinking, it could greatly increase your success in saving. Being able to switch your thinking into "saving mode" is a great big step to easing your financial burden.
But what if you don't have enough money? Think carefully if you really lack the money. Listing down your expenses could be a big help. By listing down your expenses and then categorizing them into groups could help you see where most of your money goes. You could then analyze which part of your expenditures is unnecessary. If your income is greater than you expenses, then you know you are capable of saving.
Making a goal is one way of staying motivated to save. Do you plan to buy a dream house? Start a business? Go on a long vacation? Whenever you are tempted to buy something on impulse, think if the item is worth your money. Also think of your future plans. Does the item you see now is more important than your bigger goal?
There are times when we falter from our plans. We may spend on things that we don't really need. If you happen to commit this error, don't despair. It happens to everyone. Learning the habit of saving takes time and practice. If you continue to adapt financially healthy habits, then you know saving will become easier and easier down the road.
Cut back on your spending.
First the mindset, now the action. This is the fun part. In this phase, your calculator is your best friend. List down all the expenses in a notebook. Total the amount of spending each month. Categorize these expenditures into Food, Entertainment, Utilities, Transportation, and so on. It's up to you what categories you would like to have, this greatly depends on the type of lifestyle you have. Study your list and from there you could learn where most of your money go and how you could cut back on unnecessary spending. Here, you could also decide some lifestyle changes to save more money. Perhaps you could cook at home instead of eating out? Or lessen the number of visits to your favorite movie house. You could walk instead of drive a car, or ride the public transportation instead of driving, whichever is cheaper.
Don't just think about the items' prices. Maybe you prefer buying at a certain supermarket just because the grocery items there are much cheaper. But what if the supermarket is far from your home? Consider the transportation expenses you would incur by going to that supermarket. If it costs you more than you think, perhaps going to the nearby store is the wiser choice (and saves time as well).
Don't be too ecstatic though on saving money! Most people hit the malls every time they've heard of a sale. People also tend to buy in bulk for very cheap items. Ask yourself first if you really need those things. Being able to buy things at a cheaper price doesn't necessary mean that you are saving. Merchants put items on sale to lure you. If you don't need it, then don't buy it, no matter how cheap it is.
There are many different tips found online teaching you on how to save on different things. There are tips on saving electricity, tips on saving gas, tips on saving on grocery items, and so on so forth. Read about the different advice you could find. If you find it too overwhelming, you could first focus on the area where your money goes the most. Below is a list of articles for your reference.
Here's a list of articles on how you could save on specific expenditures.
How to Save Money on Gasoline:
learn how to save gas by following these 66 ways
How to Save Money on Electricity:
72 Ways to Save Money on Electricity Without Spending a Cent
How to Save Money on Groceries:
tips to follow when you stop by the supermarket
How to Lower Your Water Bill:
conserve water and money at the same time
How to Save Money on School Supplies:
tips for parents when buying their kid's school supplies
How to Save Money on Clothes:
be fashionable but thrifty at the same time
How to Save Money on Entertainment:
save money on things such as movies, dvds, concerts, etc.
How to Save Money on Health Care:
take care of your health in a cheaper way
How to Save Money on Vacations:
enjoy travelling without hurting your pockets
How to Save Money on Dates:
be romantic but thrifty at the same time
Become knowledgeable with financial matters.
Being knowledgeable with money matters is essential to saving. Take for example, the bank. Banks are supposed to help us save money. That is what we are taught since we're little. But banks can also be our biggest foe. They could give us many "hidden" charges if we aren't very careful. Different banks has different policies. For example, they give you a penalty if your savings drop below the minimum amount. They could also charge you each time you withdraw ATM from a different bank. Take time to get to know these policies. Learn about their products that help you save money.
Other than banks, there are many other financial institutions that you should take time to study about. Don't just blindly invest your money, get to know more about the institutions where you put your money. There are several books you could refer to learn about these things.
Why you should save
Other people can't see the point of saving. To them, it is important that they could enjoy the money they've worked so hard for. Besides, what's the use of money just sitting in the bank? They want to live life to the fullest. Money is fleeting, and so they might as well spend it now. Yet, life is not as simple as that. There are many unexpected things that could happen. Simple things such as getting your car broken. Or as serious as having a loved one get sick and requiring hospitalization. The unexpected things are things that they hate to think about. Saving gives someone security, a peace of mind. Being in debt is a heavy burden. Saving eases ones life.
Of course, too much of everything isn't good. While spending without saving is a reckless habit, saving too much is also harmful. I've encountered some people who wouldn't buy new shoes, toothbrushes, umbrellas, and other stuff even though their things are already worn-out. Saving should come in moderation, and just like what I've mentioned before, allot a portion of your income for savings, the rest, spend it for your happiness and comfort. There's nothing wrong with spending, as long as you keep it in moderation, and as long as you still have money set aside for emergencies. Enjoy life, but make sure you still have something for the future.
1 comment:
Excellent article! You've made some great points here.
Post a Comment