Most of you guys have these questions on your mind.
- How do I start saving money?
- How do I cut my expenses?
- How do I save my salary?
These are the main questions that come to our mind when we think about saving money. Most of us need to start saving money but don’t know how to begin. Saving money seems like rocket science sometimes but it is not that much hard. You can follow this simple plan and go beyond the hardest part of saving money. The major purpose of this plan is to decide the way of saving money, utilize those savings, and how to achieve your financial goals. Let’s see how to start with the simple plan.
Step 1- Note Down Your Expenses
The most important thing before starting saving money is getting a fair idea about your expenses on a daily or weekly basis. Once you got an idea about your expenses, you can manage your income properly. Maintain a note about all the expenses and write down every cent you spend from the minimum expenses to the biggest expenses of your life. For example, you need to write down how much you spend on your coffee and your electric items, etc.
With this expenses note, you have a proper record of your expenses. Now start organizing all the expenses into categories such as groceries, clothing, medicine, etc.
After this categorization, you can get a fair idea about how much you spend on each one and you can notify what are the expenses you can cut out.
Step 2- Making Your Budget Plan
Now you have a well-organized expenses list. So you can work on your budget plan. This may be critical when it’s beginning to save money. But once you created your first budget plan, then you will realize how easy it is. You can use a table of paper physically or on your computer which has these columns.
Here you can get identified more about your expenses and how you can cut off them. And you will be able to think about how to reduce the expenses sources with budgetary ways.
Step 3- Dedicated to Saving Money
Always rethink your miscellaneous expenses, like dinner nights, taxis, parties, etc. These are not essential expenses so they can be minimized. And make you maintain a percentage of your income for the savings category and next you can plan your entertainment events. This percentage can be 10%, 15% per cent of your income. If you cannot maintain this method you can make your money-saving challenges or make a monthly standing order for a savings account.
Step 4- Set a Financial Goal
Every action needs a goal. If you have a goal to accomplish you can follow the process continuously focusing on your goal. Choosing something meaningful for you will keep you motivated through time. Also when you know your goal you can get a fair idea about how much you need to save monthly to get your target. The goal can vary from person to person. Commonly the goals can be such as a dream house, tour, vacation, starting a business, etc. Set your goal properly and then saving money will be so exciting.
Step 5- Break the Goal
Sometimes it is not possible to save the exact amount every month. You have to prioritize and divide your goal into short term and long term goals. This method will lead you to accomplish the final goal and have clarity on your money-saving plan.
Step 6- Identify the Priorities
Having the priorities list of the things in your life will help you to have a better plan for every inch of your life. So having the prioritized list for your financial goals is the main key to maintain your money-saving journey. You can identify your priorities with the importance of the thing or urgent of the thing. Once you identified the priorities, you can focus first on the most important ones.
Step 7- Save the Right Way
First, have proper knowledge about bank account plans and their interest rates in return. And make sure to sign-up for rewards and cashback offers. There are a lot of ways to get profitable rewards with saving plans. Make sure to aware of that too. Let’s start to save money and achieve the ultimate goals in your life.