Monday, March 21, 2011

Money Matters : How to Save Effectively

Do you have difficulty in saving ?  Here are some ways how to save effectively :

1.  Decide now and do not delay saving money.

2.  Define long-term plans and determine to achieve it.

3.  Define how much money allocated for savings.  Atleast 10% – 20% from monthly  income can be set aside for savings.  Start with 10% for the first month and gradually increase on the succeeding months, make necessary adjustments if needed.

4.  Classify expenses according to the needs first then wants. Rewarding yourself from time to time is also  good to boost self motivation.

5.  Once  income is received, set aside the  savings first.  No matter how small the amount you have for savings, determine to save it first.

6.   Pay or  return the borrowed money from savings.  This is something new but a very effective practice.  There are cases when you need to borrow money from savings, try to increase income to fill-in the savings you need to return.

7.   Left-over money can be allocated to some personal  wants  which includes leisure expenses, or just put it on the bank instead as additional savings.

8.  Diversify savings into long-term investments with higher yields.

Do not be discouraged if some months you fail to save money, go back to your plan and determine to save again.