Saving is essential to building your long-term wealth and securing a financial sound future. It is important to begin saving early in life and to save regularly. While we often think saving should begin when we get our first salary, saving can begin with our university stipend often called ‘BC”. Remember the everyday decisions you make about money can have a lifelong impact. Saving allows you the freedom and flexibility to fulfill your goals.
The concept of money saving is very complex to most of us, however with the few tips below you’ll have a better understanding simple and exciting ways to save that paper!
- RECORD YOUR EXPENSES
The first step to saving money is to figure out how much you spend. Keep track of all your expenses. In as much as most of us find difficulties in keeping track of our expenses because it hurts to see how much we spend on goodies, we have to learn the art of keeping track of our expenses. Ideally, you can account for every penny. Once you have your data and organize the numbers by categories, such as gas, groceries and total each amount.
2. MAKE A BUDGET
Once you have an idea of what you spend in a month, you can begin to organize your recorded expenses into a workable budget. Your budget should outline how your expenses measure up to your income—so you can plan your spending and limit overspending. In addition to your monthly expenses, be sure to factor in expenses that occur regularly but not every month. Once you make an outline of your budget do not just spend or buy anything that is not accounted in your budget.
3. PLAN ON SAVING MONEY
Now that you’ve made a budget, create a savings category within it. Try to put away 10–15 percent of your income as savings. If your expenses are so high that you can’t save that much, it might be time to cut back. To do so, identify non-essentials that you can spend less on, such as entertainment🍷🍷🍷. This is an important step because it is from this step that we begin to cut off the unnecessary spending and begin to save.
Take time to implement the few tips and we will be back with more tips!