On Baizat.com and at our activities, you will learn the most important methods and skills of saving. This article covers the basics you should be considering. You may be surprised at all the different areas that can be involved when working towards your saving plans.
Saving money is a process that takes a lot of creativity and financial discipline.
We can help you in starting your plans, but it is important to remember that only you can ensure that you meet your goals and targets. Following the tips in this article will help you greatly in reaching your goals.
1. Don’t Just Think Big
When considering saving and setting a budget; many people only think of the large expenses in their life – for example cars, houses or holidays. Of course these are vital to your saving plans, but they are definitely not the only thing you should budget for.
It’s also important to take a record of all the small daily costs you incur and then work out how you can reduce them. Good examples may be ordering fast food instead of making a meal or going to the cinema instead of watching a film at home. Whilst those things may be fine now and again, to do it regularly will soon build up some unnecessary costs.
If you estimate your smaller costs over a year, sometimes they may even add up to more than the big expenses you were worrying about!
2. Be realistic with your cutbacks
Imagine you want to go on a diet and decide to stop eating unhealthy food.
In an ideal world, it’s easy to say: “from now on, I will stop eating all bad food completely”. With great thoughts of all the health benefits and wonders this would do to you.
But when you set that goal, are you being realistic? Imagine a Friday night when you are hungry, watching the TV and desperate for just a small piece of chocolate!
It would be much easier to cut down on your unhealthy foods intake and save it for treats and occasions – stopping altogether is just punishment and makes things a lot harder to achieve.
The same thing goes with saving and managing expenses – make sure you are cutting back realistically and not giving yourself targets you will never reach. You shouldn’t punish yourself or your family when trying to make cutbacks in life.
3. Open a Saving Account
This one is simple! If you are planning on saving anything, make sure you open a Saving Account so that your money will gain interest or profit. Don’t leave it lying in a Debit Account or in a pre-paid Credit Card.
There are other options available for saving such as Deposits and Investment. It is important to educate yourself on these before making your decision.
4. Be a ‘Smart Shopper’
See our Article on “Being a Smart Shopper” and learn about how you can shop to your advantage; saving costs to meet the same needs and wants as before. Why punish yourself by cutting back completely, when you can be clever in your spending instead?
5. Manage any debt first – work towards a clean slate
Paying off any monthly Credit Card or debt related payments you have should be the main focus before saving. Remember your debts should only take up a small amount of your monthly outgoings.
Take a Consultation to receive guidance to clear your debts.
6. Be patient!
Remember, your cutbacks and savings will take some time to really show in your Saving Account – but if you stick by them you will start to notice the difference. It should be over a matter of years, not days or months. Don’t reward yourself at the end of the month by spending all your savings in sales!