The Kind Tips – Tips for Life, Study, Work and Entertainment – 6 Basic Money Saving Tips

6 Basic Money Saving Tips

6 Basic Money Saving Tips

As you might know, there are two different approaches towards saving money; the first approach is to save money before you really pay any bills, and the second one is to pay what you should, then save what is left in your purse. In fact, the first approach is often practical in terms of saving money, but the second one is always useless in reality. If you like to start money, here are a few suggestions you may consider in this regard.

1. Work out a budget.

In order to save your money, you should think carefully of a budget and then try to stick to it. In long-term, you would see many benefits from it. With your budget, you could know clearly about in which area you spend more than necessary and what fixed cost you have to pay every month or every year. In doing so, the most important thing is to keep with the budget for a long period of time, which would be much helpful in having a comfortable life in terms of the financial aspect.

2. Spend after your saving.

If you want to save money, it is strongly suggested that once you receive your salary, apart from paying your bills, you had better save certain amount of money in the first place and then consider spending the left for other purposes. Only if in some special situation, could you use the money in your saving account.

3. Set up a emergency fund with your savings.

To handle any unexpected difficulty or accidental event quickly and properly, you should always allocate the certain amount of money, let us say, equaling three to six months of your salary as emergency fund. No one could envision what would happen tomorrow. You should be financially capable to cope with something unexpected, such as losing job, having a serious illness, etc…

4. Have a better use of your credit card.

In addition to your emergency fund, do remember to allot have 15% of your credit value for emergencies as well. If unnecessary, do not overuse your credit card to buy anything which could be put off or deleted in regard to your earning. And you should also build up the good habit of not exceeding your credit limitation.

5. Pay yourself first after you do with a debt.

As we suggested before, if you have a loan or debt to pay, do it first, then put fixed amount of money in your savings account on the monthly base. After that, you could use the leftover for paying your bills in food, clothing, or entertainment. That would ensure you to have a well-planned expense schedule for your daily life.

6. Deal with your mortgage cleverly.

If you have a mortgage to deal with, you should do it cleverly; you should pay your mortgage more often and in time, then you would finish the payment quite soon and also a lot of money as interest charges. If it permits, you could pay your mortgage weekly or biweekly instead of monthly in the traditional way.

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