As the family grows, your cost will increase, and you will always seems to have something new that will come up.
It’s easy to lose track. Here are some tips on how to save money for a greatter achievements in life: the house, the car, the trip, a special gift, a smooth retirement …
1. Record all your expenses for a month To be able to save, you need to know how you are spending the money. It sounds simple and obvious, but it isn’t. Over the next month, mark all your expenses. You don’t need a complicated spreadsheet. A little notebook will do. Write all small expenses, such as tips or just that cup of coffee. Get ready for some surprises. That sacred coffee every day, or a daily bottle of water, may represent more than $90 per month, or $1080 per year (and $ 10,800 in ten years! Considerable savings). And the outfit you got for your child, those cute ones you cannot resist? If paid with a credit card, calculate an increase of 20+ percent, at least on top of the sticker price. It’s what it will cost you if you fail to pay the invoice total that month. You do not need to give up your daily dose of coffee, or hydration, or fail to dress your child in super cute clothes. All you have to do is just weigh in all the spending. A bottle of water can come full from home, for example. As for the clothes, wait for sales or clarence and give yourself a spending limit whenever you start buying. Knowing where the money goes every month, you will have a better idea of where to cut to save for the future.
2. Put yourself first. It may not make much sense at first, but the secret to start saving is to “pay” first. No, it’s not for you to buy the first blouse you see on display. Think about a realistic amount of long-term goals (like changing the car, make that treatment, saving for emergencies, a vacation), and then “pay” early in the month, separating the money in another account. If you wait until the end of the month to see how much left to save after all mandatory expenses, you will realize that there is nothing left, because it is almost always the case for everyone.
The best way to make payments is to schedule automatic transfers from your bank account to another account or an investment. That way it will make you save. You can create, for example, two accounts: one for a long-term goal, such as saving for retirement or emergencies, and one for your dream closest consumption (the trip, the car etc.). Set the transfer to close the day you receive the salary. The cool thing is to create a routine, as if it was as mandatory as paying the electric bill. Later in the month, you will have the satisfaction of knowing that a portion of the salary is already saved for something really constructive. Economists say that an emergency fund should have the equivalent of six months of total expenses. If you have managed to gather that amount, you may even start saving for retirement.
3. Pay off your debts Yes, paying your debts is the best way to save money. The interest rate charged on overdrafts or credit card is much higher than the profit of any investment. Get rid of your debts first, especially credit card, so you can start saving money. If you have late payments, contact the company or bank to see if you can negotiate a settlement. Do not wait, untill you have all the money to pay off the debt. Find out how to pay it off as soon as possible, even if it has to be little by little.
If it is for you to have some debt, let it be to finance a home. Yes this is a debt that is worth it.
For the car payment, you can do the following: when you finally finish paying, instead of rushing to exchange model and pick up a new provision, pretend that the booklet is not over. Continue paying the same amount for a time, only for yourself, in a separate account. So you will earn enough money to make a better deal, giving greater input and achieving a lower performance, with less interest.
4. Take one goal at a time and be strong! Choose an object of desire, something you want very much. It may be a new sofa, an electronic device, a trip. Calculate how much it will cost and trace a realistic goal, like saving for six or twelve months to achieve. To motivate, spread photos and advertisements of this desired item everywhere (at work, at home, within the portfolio). Whenever thinking about buying something, ask yourself if you want it as much as you want your big goal, the one for which you are saving.
5. Make the withdrawals hard Search for alternatives applications that are not ready or available to move. Funds with automatic withdrawals when the current account is negative doesn’t work – it is very easy to end up with no savings in a moment of excitement or necessity. Make separate accounts, or apply in investment rules which do not allow automatic withdrawals, or that deem certain work redemptions (such as CDs).
6. Did you receive a money did not expect? Save it! You received a refund of income tax, a bonus at work or some unexpected money? First, resist with all their might to spend that’s the first impulse. If you can resist for a few days, it’ll be much easier to appreciate the extra money. If you’re still having some debt, use that money to reduce it (pay the most from the car financing or own home, for example). All Credit card debts have priority! Second comes the overdraft. It won’t cost you anything to try and talk to the bank manager to see if there’s an easier way to pay. If you do not have a debt, save the money in that special account different from the day to day account, for something that really matter.
7. Rethink the spendings with a car If you have a car, write down all the expenses you have with it. Say that car is practically a child, and it’s true. From property taxes, insurance, financing, fuel, parking, tolls, licensing, washing and repairs, you may be surprised at the amount of expenses annually.
There are people who realize that life becomes even easier without the car (or just one car for couples). Even if for you the car is essential, take it easy with the spending. Leave the car at home whenever you can. Walk to the supermarket and use the delivery service at home. To concentrate their business in the same region. Take the car to solve several things at once, And do the math. In large cities is more expensive to park a car than going back and forth in a taxi, depending on distance. And spending on toll and fuel can surpass that amount of a bus ticket – and even plane.
Thinking Out Cloud 