It is no secret that plenty of people find it very difficult to save their hard earned money. Each and every one of us have our own reasons why this is happening. First of all, If you are a new employee, you don’t get a high pay immediately, you will need to prove yourself before you get a raise. A lot of young professionals are also bread winners of their families. Finally, it is very hard not to spend money specially after spending a lot of time in the university. It is very important that we learn how to save money because we don’t know when unexpected circumstances will happen. An economic crisis might hit our country causing a lot of big businesses and companies to shut down. A family member might get ill. With this being said, it is always a good idea to be prepared at all times. Allow me to provide some helpful tips on how to save your hard earned money.
1. Know your needs and wants
Know if the item you are supposed to buy is a necessity. Your needs are something that you must buy because it is necessary for survival. Wants on the other hand is the complete opposite of needs. A lot of times people make the mistake of prioritizing their wants instead of their needs. Do not keep up with the trends if your savings are suffering.
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2. Write down your expenses
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It is a good habit to list down your daily expenses. From the tips that you give to your food expenses, list them all down. By doing this, we get to monitor our daily expenses. We become more aware on how to budget our money by doing this.
3. Look for alternatives
Stay away from branded items. Nowadays, we should be very practical, branded items does not really mean they are quality items. For example, when we buy branded clothes, it is not the clothes that make us attractive, it is how we carry ourselves wearing them.
4. Stay away from using your credit card
It is very hard to control impulsive buying. This just gets worse whenever we choose to have our own credit cards. Because of using credit cards, a lot of people are having difficulties settling their debts. Remember to only bring your credit card with you whenever you are going to pay a huge amount. By doing this, you avoid buying things you don’t really need.
5. Save a small portion of your salary
This is the best way on how you can save your hard earned money. If you could allot at least 5% of your salary for your savings, you would be surprised how much it would help you in the future.
If you follow these simple tips, it would benefit you a lot.