Best Money Saving Tips
Don't buy stuff you don't need!........ Money saving tips is all about helping you develop a mindset or an awareness of where you're currently spending your money. Easier said than done, right?......How do you do that after a life time of accumulating compulsive habits? However, money saving tips can help devise strategies on where you can save money by identifying those areas of spending you can best look to discover savings. A known difference between people who are making progress financially and those who aren't is, the ones who are progressively developing wealth have developed a plan whereby they pay themselves first before anyone else gets paid. Now, we're not saying don't pay your bills…..No!.......What we're saying is….if your monthly take home pay check is $4,500 for example……, we're saying you need to devise a plan whereby you're able to peel a percentage right of the top (say 10% or $450.00) and tuck that away in a savings account. Oh Boy......! Here comes the hard work…….Yes, you're right……! Now you have to figure out what money saving tips to use in order to realise those savings… But, still eat…..pay your bills and keep a roof over your head. That's where money saving tips and The Secrets of How to Save Money come into the picture. Unless, you're just a hopeless spendaholic who really needs psychiatric help. Then, you can combine money saving tips with our free budget planner and get an additional turbo charge boost from our clever budgeting tips to guide you towards your goal. However, for some it's going to sound like it's all too hard…….. But, what's your alternative? Go through life constantly living on the edge financially. Then, when you're sixty start to realise you're no longer a super being and you're now growing old, unable to stand on your own two feet financially? Well, that's too bad, because it's your choice, pay it now, or pay it later. Unfortunately the vast majority of the population (somewhere it's written 95% +) have gotten into the habit of paying everyone else first and then, one day right after they get their finances a little bit better under control….. then, they're going to start a savings plan. But…., you know the script……..tomorrow never seems to come. Why? Because, they never had a workable plan to begin with. Who was it that said.......Fail to plan……..plan to fail? So, the common sense thing to do is, get yourself a workable personal budgeting plan tailored to suit your situation and use a couple of our money saving tips. A good place to start with any plan is to establish an achievable goal and use the following money saving tips. An important aspect of a workable plan is it will help establish the right habits. And this is the big secret. You see……, the major difference between the people who succeed at some thing and those that don't is simply the difference in their habits. 'Repetition is the mother of perfection'. Einstein is credited with saying, "Mans most ingenious invention is compound interest." If you start a savings plan that pays interest on your deposits and to give yourself ongoing encouragement you should keep in mind you're money is now starting to work for you. You're employing the principle of compound interest which enables you to earn interest on your savings. And then, you can start to earn interest on the interest and so on. That's what's meant by 'Compound Interest'. Here's a good money saving tip example...........! For the example we'll say you want to start a wealth creation program and the first step is to save up enough for a deposit to start property investing. Your goal is to buy a unit or a townhouse for $380,000. A 10% deposit, plus the necessary purchase costs would mean you would need about $52,000. If you were to save a $100 a week for 8 years and then, over that time you earned an average of 5% interest on those savings, you would end up with about $52,000. If you stopped saving at that point and then, purchased the investment property we talked about and you held it for 15 years. Over that period at a conservative 5% capital growth it would end up being worth $790,000. Not bad for giving up a few little extra comforts of life.Let's say you were to save a $100 a week for 8 years and then, over that time you earned an average of 5% interest on those savings, you would end up with about $52,000. If you stopped saving at that point and then, purchased the investment property we talked about and you held it for 15 years. Over that period at a conservative 5% capital growth it would end up being worth $790,000. Not bad for giving up a few little extra comforts of life. Of course, if you were able to contribute more than the $100 per week then you would reach your savings goal sooner. The above example…..for some of you…..may only be scratching the surface. What if you continued to save and the equity in your property investment continued to grow? Then, you could continue putting more and more into property investing. Okay, enough day dreaming.... let's get back to the money saving tips goal! As mentioned, a worthwhile goal is to establish the habit of paying yourself first. But, with any goal it's wise not to bite of more than you can chew. The first steps you take towards any goal should be easily within your grasp (capabilities). However, it shouldn't be so insignificant that any progress you make is hardly noticeable and more to the point, where the results aren't encouraging enough to keep you going. Now we've already established, one of your significant goals is to pay yourself a percentage of your net take home pay. Possibly, a good place to start for most could be somewhere between 5-10 percent of your take home pay. Starting out, the idea is to take baby steps initially, something that isn't too difficult in the beginning. Kind of like training wheels when you learn to ride a bicycle. Then, once you establish the habit and you're comfortable with doing it you can possibly increase the amount you're saving, depending on the goal you've set for yourself. Use the free budget planner planner to assist in determining what might be a realistic savings amount. You may find clever budgeting tips can also help you find additional savings If you don't already have one, open a savings account that pays a good market interest rate. In Australia, organisations like ING Bank or Bankwest have savings account products suitable for this purpose. Additionally, there is any number of other institutions in the market offering this type of competitive product. For those who already have their own home, or are in the process of buying it, you could consider using a Line of Credit or an Offset Account. More is discussed about these money saving tips at faster mortgage reduction and other locations on this site. p>When saving, an idea worth considering is when your savings reach $10,000, then you can put that amount into a Term Deposit as it will pay you a higher rate of interest and you'll be locking it away from any temptations that may come your way.Now, if you're not already saving money consistently from your ongoing cash flow, then you might consider activating the next essential step in your money saving tips plan. That is, to rationalise and reconcile where and what you're spending your money on. The first easy step in this process is to go to our free budget planner and fill in all the blanks, then you can reconcile what's coming in and what's going out……..go on!.....off you go!……. What........ ! Back already……..doesn't that feel better....? Now you've got that off your chest. Using money worksheets to do your household budget is an important psychological step for your personal budgeting. As you may already have seen on the free budget planner the expenditures are organised in groups and it's designed to help give what psychologists term 'a focused awareness'. Kind of like when you buy a new make of car you've never owned before. Then, all of a sudden, when you start driving your new car around you notice there are hundreds of them out there on the road. On an ongoing basis, it's also important to revisit your personal budgeting worksheet checking to see if you're making any improvements. It's up to you, how often you revisit your money worksheets. But, we suggest at least once a week in order to stay in touch with your cash flow and importantly how your money saving tips is growing your savings. The secret notebook.....! Another one of the simple money saving tips. Many people in the initial stages of their personal budgeting journey carry a small note book and pen everywhere they go and note down all cash expenditures on a daily basis. Others get into the habit of asking for a receipt every time they complete a shopping transaction. These simple strategies get you focused on where your money saving tips is taking you……somewhere, or nowhere. By using the budget worksheet to monitor cash flow in and cash flow out, many people are able to start identifying areas where they can be more frugal with their spending. It will show you, why there can sometimes be more month left at the end of your money. So, please be our guest and use The Secrets of How to Save Money and best money saving tips to start building a personal money management plan and make it your guide to your own financial freedom. More free frugal tips, to further reduce your cost of living. This next suggestion is actually frowned upon by some economic guru's, because we're going to suggest to you, not to start paying that credit card balance off straight away, assuming you have a credit card balance. Instead, we recommend you start a 'peace of mind' savings account and before you use your new savings to pay off debt, build your savings up until you can at least cover 3 months of living expenses. By building your confidence this way, may just give you the traction to develop enough momentum to get you over the inertia hump. Especially knowing you now have enough money set aside, in the event of any emergencies. Also, this new feeling of confidence (knowing and believing you can) can help bolster your resolve when it comes to curbing those urges to spend unnecessarily. Okay…….., let's get down to business and find some area's where serious money saving tips can be put to use. Don't forget, to carry a small notebook and pen as it can greatly assist in what we consider the most important fundamental in learning money saving tips and that's to develop a mental switch every time you go to spend money So, every time you make an entry into that notebook it will alert you to the opportunity to start asking yourself, is there another alternative? Is this expense really necessary? Get a grip……., spending (especially for indulgences) doesn't lift depression. In fact, after the initial 'buzz' it can make things worse. Like the debt and the emotional hangover many people have to deal with right after Christmas. It's not the cost of an item that determines whether it's an indulgence, its usefulness determines that. Start developing the habit of the mental switch. Ask yourself, "Do I really need it?" Use your ingenuity to assess if there are more frugal alternatives, other than just giving your money away unnecessarily.
Here's a strange one of our money savings tips. Look at your pay check……etch it into your mind, come to terms with the fact that the bottom line amount is the outer limit of where you can spend.
Then, you can enter the bottom line number into your free budget planner money worksheets. As you will see it will offset against whatever expenses you've entered and it'll give you what the balance left is (hopefully it's a plus sign) weekly, monthly or annually. Of course, the money saving tips goal is to work at spending less than that. This-away, you have to account for your actions. You can't continue to spend 105 or 110% of your income and continue to get away with it. An important key to money saving tips is no profound secret. Determinedly spend less than what you make, don't unnecessarily borrow, and continually check your map (budget worksheet) to ensure you're on the road to financial freedom. Okay, now the going gets a bit tougher, yes…..you knew it was coming, but we'll be gentle and not outright ban them. Credit cards, start reducing your use of them. Remember the problem is not credit cards but the misuse of credit cards. Is compulsive spending controlling you? If the answer is yes! Then it's probably going to be well worth your time to develop discipline with your spending habits. You can consider taking away the security you might be using in case of 'emergencies' (sudden urges), like credit cards or other avenues of borrowing. If need be, cut up a few credit cards, maybe all of them for the time being if necessary. But, commit to go no further into debt, so importantly, you start to reverse the process that produced the debt. A practical money saving tips suggestion for those who have difficulty with the credit card trap is, to get a debit card and use it instead of the credit card. This means the money is debited directly from your bank account each time you spend. This adds a built in automatic restraint into the money spending, thinking process. Because, now you know you're actually spending your own money. Most major banks now offer Debit Card products. Is your car up to scratch? Cars cost more money than most people realise. Do you own a 'unique car?'……you know………., the one that's paid for. Most people buy new cars to keep up with the Jones's. Or, if they continue driving the existing vehicle they don't budget maintenance money for it. So, when it breaks down they can't afford to repair it, because it's too far gone. Then, all of a sudden it's easier to go buy another one, 'no money down', right? Our money saving tips urge you to remember, those car advertisement 'no-money-down' gimmicks will require some 'budget destroying' payments. Average monthly maintenance for most cars on the road (around 7 years old) is about 5 percent of a household budget. If you compare a monthly 5 percent of your budget for preventative maintenance on an older car to about 15% to buy a new car, obviously no contest. Our money saving tips suggest you keep telling yourself, 'it takes a smart person to make money and an even smarter person to hang onto it', in the event you have to emotionally adjust yourself when having to forego a new car and you continue driving the older car. Poor petrol consumption, forget it! It takes a lot of petrol to make up the difference in the cost of payments. Can you cook? Cook a meal - Discover the kitchen occasionally and reduce the number of restaurant visits or fast take-away food. If you have a spouse, they may appreciate you getting involved and helping with the cooking. If you don't know anything about it, keep in mind it's not that difficult. Average restaurant meals and take-away food are no contest for well prepared home meals and you'll be cultivating a happier home environment as well. Almost everyone enjoys eating out occasionally, so make it part of your 'entertainment' budget. Then, stick to your personal budgeting plan by saving to eat at a nice place for special events rather than squandering it on fast food non-events. What do you do for lunch every day? If you're buying lunch every day, consider how much you can save, by preparing lunch at home and taking it to work. Stop buying those $3-4 cappuccinos. Have tea or coffee at work, or if you're on the road take a thermos. Think about getting one of those big glass jars they sell in the supermarkets, the ones with a screw top lid, or a big old biscuit jar you may have at home you're no longer using for any other purpose.And at the end of each day you can start putting the change that's accumulated during the day into the jar. This'll not only give you a good feeling, but when you habitually think about buying lunch or paying for a coffee the image of the jar will pop into your head and you'll have second thoughts about spending the money. You'll be pleasantly surprised how quickly it can add up to a $100. When it does take it to the bank and put it into your savings account. Where do you go on holiday every year? People spend big dollars they can't afford, travelling thousands of miles to see things and places they might not remember next year. Did you know other people are doing just that as they come to visit areas within an hour or two drive of where you live? Bali or Disneyland may be calling you, but there's lots of interesting things to see and fun things to do within a days drive of where you live. Think about going local this year. Incorporate money saving tips into your life and drive yourself to financial freedom. Do you keep up with the Jones's? This tends to a bit of a problem for many…….,……because so many are unconsciously doing it and can't or won't admit to it. However, you examine yourself carefully on this one and check to see if you're not also caught in that web. Over time we become conditioned by the 'status quo' and we can even have feelings of embarrassment if we don't have what seems to be the same standard of living as our peers or neighbours. But, its worthwhile keeping in mind they're more than likely in debt too, so they won't be making any repayments to pay off debt for you anytime soon. Also, always be vigilant on a daily basis, as you and the family are constantly being bombarded by advertisements through the media and cunning merchandising tricks when shopping. So, if we're not constantly alert we can blow the family budget before we realise what hit us. Another useful tip to help discipline yourself is once you've incorporated your money saving tips into the free budget planner and you've determined a comfortable amount you can save out of each pay check, a good strategy could be, if your company is amenable to doing it, is to have them deduct and deposit that amount directly into your savings account. That way, you leave nothing up to chance and you're also making a public statement, a firm commitment of what your intentions are. Talk to your payroll office, many will be happy to help you with this. By the way, if you have a family, let them in on the project as well and tell them about the money savings tips. Tell them what you're trying to achieve, ask them for money saving tips. Involve them in the process and truly make it a family budget. Get their opinions on where they think money can be saved and you will find everyone will start working as a team. As opposed to leaving them on the outer and possibly criticising them when you see some form of waste on their part which is counter productive, especially if resentment stems from your criticism. More money saving tips:
The Secrets of How to Save Money Return from Best Money Saving Tips to Smart Money Management www.Discover-Financial-Freedom.com
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