How To Save Money
Saving money, especially this time and age when there are so many temptations calling out to you every second of the day, is very, very difficult. From loans which turns into college debt, to buying highly expensive smart phones which is said to be at the value of a person’s kidney, needless to say, millennials or anyone born in modern generation will and have a difficult time in preventing themselves from spending.
Now, the big question is how do you save money?
As stated before, there are so many temptations here and there; however, it is also important to take into account that due to inflation and increase in demand, prices even for some common goods have skyrocketed to the point that the marginalized part of society increased more than the capable ones or the middle class and above who are able to buy their daily life necessities. Thinking about this, it is almost an impossibility to even save money, especially for those living in cities or areas where taxes are high with very low income and some do not even reach minimum wage, or rent is high due to congestion but there are still many ways in order to save money, regardless of whether or not, you are saving a huge or small amount of cash per period.
The following are tips and tricks in order for you to efficiently save your dough:
I cannot put enough emphasis on how important it is to note down every expenses you make. Keep track of EVERYTHING – yes, that means even the cost you spent on toothpaste, newspaper, snacks, everything. You need to take into account every penny, every cent you spend, and you need to be able to efficiently organize those set of data so that once you need to consult your bank or in need of money to pull out, you are sure on how much money you have left and what you actually spent on instead of spending your money like there’s no tomorrow.
By this I mean, plan ahead. If for example, you want to save a million dollars in 4 years’ time, make a timetable on how much you should save per interval and restrict yourself to how any dollars you can only spend.
- Choose a Target to Save for
Once you have set an amount you want to target, you now have to choose on what you will do with your money after. You can either save money for material possessions such as a car or a house or you can simply put it in your savings account in the bank for retirement. The choice is up to you. Choose wisely.
- Efficiently Decide on your Priorities
Material possessions have a limited life span, especially for technology such as cars or phones. For sure, it is inevitable that your car must be replaced, say after 10 years or so. It is then important for you to save money, not only for long-term goals such as retirement but also for short-term goals such as replacing whatever it is in need to be replaced.
- Use Legitimate Means of Saving Money and Make it Automatic
Saving money in a piggy bank is good for pennies; however, saving money for many wads of cash should be saved in another place, particularly in a bank. You are free to choose which type of bank account you want to save your money in but I highly suggest you put your money in a savings account, make it a habit to never always do cash transactions by availing modes of payments such as cheque and credit/debit card. Another thing is you should have the habit of saving money automatically.
For security purposes, it is important that you watch your progress per month. This will help you and encourage you to continue saving money and be able to hit your goals quicker and easier.
Free sample essay on Saving for the Future. ‘Little drops of water make a mighty ocean.’ Save little by little and one day you will have saved a big amount.
The Life Insurance Corporation of India, which is the biggest Insurance Corporation of India, encourages people to save for the future. The habit of saving should be ingrained in man but there is more people nowadays squandering money than saving it. Even an ant has the sense of saving; a beaver in a forest saves food little by little for the rainy season. The rainy season for the animal indicates for man difficult times of need. If you go on saving you have always something to bank upon and you are never in need. The LIC established by the Government of India is the largest mobilize of the savings of the people. The LIC is perhaps the oldest organization which mobilizes money from the people and lends a portion of it for constructive activities of the nation.
Many years ago there were small insurance companies and they were all integrated into one composite organization. There are agents in each LIC branch who go out to the people and companies, talk to them and book insurance policies from them for a particular period. After the stipulated period of insurance is over the sum assured is paid to the insured person with a sizeable amount of bonus. This is a great benefit to the person who takes an insurance policy. The amount realized after the policy matures may be helpful for a person’s daughter’s marriage, for the educational expenses of his children, for buying a house etc. The concept of saving was first promoted by the insurance companies which have done a great service to the people.
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The earning members of a family have no tendency to save some money out of their monthly income. Though this message of the importance of saving has been emphasized often people are not strict in observing the habit of saving. If from a young age students who get some pocket money learn to save a certain percentage of it every month, it will be helpful to them and to their parents. Kids are allowed to have recurring deposit accounts in banks. This scheme of saving by the kids has been long in operation in banks. Students who receive pocket money should resolve to put away a certain amount in their accounts in a bank. The money thus saved may even be helpful to a certain extent for their future education.
Nowadays there are saving schemes for a person’s daughter’s marriage and for the children’s education. There are schemes for doubling a fixed deposit in some years. A person can get monthly interest out of his deposit in a post office. Of course, businessmen who are prosperous can deposit now and then sizeable amounts. The habit of saving should be cultivated from a young age and as we grow older and older we will have the firm resolve to set apart a certain amount for deposit in a bank or in a pest office. Recently there was a report in a newspaper that the women who have formed an association and are engaged in some business encourage their children to save a certain amount in a recurring deposit account in a bank. This is good news. Every parent, whatever is his or her job, should encourage the children to save a certain amount in a recurring deposit account. The amount deposited in a recurring deposit account may be Rs.10/- or Rs.50/- or Rs.100/-. When the amount goes on accumulating a student may have a substantial amount in his account at one stage.
A student who saves out of his pocket money learns to plan his life even from a young age. Liberal spending and saving nothing is most unwise and this is the cause of a person’s economic crisis sometimes. The golden dictum is that a family should learn to live with the income it has. Going on borrowing and finding oneself in an economic crisis is mismanagement of money. A student who learns to save will be frugal in the future. As he grows he knows how to spend money wisely. Saving some money for the future is a golden principle.
It may be suggested that every school may insist on the students that they should save a certain amount and deposit it in a bank. The school management may deposit the students’ amounts in the recurring deposit account of each student. This will be a great social service schools can do.