Sometimes the hardest thing about saving money is just getting started. It can be difficult to figure out simple ways to save money and how to use your savings to pursue your financial goals. Join Moolr today as we take you through a few tips and tricks when it comes to saving money.
-
Record your expenses
– The first step to saving money is to figure out how much you spend. Keep track of all your expenses – that means every coffee, newspaper and snack you buy. Ideally, you can account for every single penny. Once you have your data, organise the numbers by categories, such as gas, groceries and mortgage, and total amount. Consider using your credit card or bank statements to help you with this. If you bank online, you may be able to filter your statements easier to break down your spending.
-
Make a budget
– Once you have an idea of what you spend in a month, you can begin to organise your recorded expenses into a workable budget. Your budget should outline how your expenses measure up to your income – so you can plan to spend and limit overspending. In addition to your monthly expenses, be sure to factor in expenses that occur regularly but not every month, such as car maintenance.
-
Plan on saving money
– Now that you have 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 could very well be time to cut back. To do so, identify non-essentials that you can spend less on, such as entertainment and dining out.
-
Choose something to save for –
One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for – anything from a down payment for a house to a vacation – then figure out how long it might take for you to save up enough money for it. Here are a few examples of short term and long term goals:Short term Emergency fund VacationDown payment for a car Long Term Retirement Your child’s education Down payment on a home or remodelling project.
-
Decide on your priorities –
After your expenses and income, your goals are likely to have the biggest impact on how you save money. Be sure to remember long term goals – it is important that planning for retirement doesn’t take a back seat to shorter term needs. Prioritising goals can give you a clear idea of where to start saving. For example, if you know you are going to need to replace your car in the near future, you could start putting money away for one.
-
Pick the right tools –
If you are saving for short term goals, consider using these FDIC – insured deposit accounts: Regular savings account High-yield savings account, which often has a higher interest rate than a regular savings account Bank money market savings account, which has a variable interest rate that could increase as your savings grow Certificate of deposit, which looks in your money at specific interest rates for a specific period of time For long-term goals consider: FDIC – Insured individual retirement accounts (IRAs), which are tax efficient savings accounts Securities such as stocks or mutual funds. These investment products are available through investment accounts with a broker-dealer. Remember that securities, such as stocks and mutual funds, are not insured by the FDIC, are not deposits or other obligations of a bank and are not guaranteed by a bank, and are subject to investment risks, including the possible loss of principal investment.
-
Make saving automatic –
Almost all banks offer automated transfers between your checking and saving accounts. You can choose when, how much and where to transfer money to. Even split your direct deposit between your checking and savings accounts. Automated transfers are a great way to save money since you don’t have to think about it and it generally reduces the temptation to spend the money instead.
-
Watch your savings grow –
Check your progress every month. Not only will this help you stick to your personal savings plan but it also helps identify and fix problems quickly. These simple ways to save money may even inspire you to save more and hit your goals faster.
So, that was Moolr’s blog on how you can save up your money and avoid bad credit loans. We hope this blog was informative and you now have a better idea on how to avoid loans.
Are you trying to save for your first flat or house? Maybe this blog will help?
