Tips to save money

Living paycheck to paycheck, many neglected the value of having savings until unforeseen circumstances arose that caused them to never look at money the same way again.

But why let an unfortunate event occur in your life only to learn its lesson and meaning when, by taking small but frequent steps, you distance yourself from such an impending problem, perceived or not?

Here are some money saving tips that could save you from any future calamity involving money:

1. Open a dedicated savings account

Like any first step down the road to making some savings, it’s imperative to open your own savings-only account. Unlike your main bank account that you use to deposit and withdraw money, this dedicated savings account is strictly for money deposits only.

For optimal interest rate benefits, look for a bank that offers a “above inflation” growth rate, which is something you may need to ask yourself if they don’t back you up.

Savings account

2. Eliminate unwanted expenses

Whether it’s a monthly service subscription that you no longer feel is beneficial to you or a habit that simply drains your money, many are guilty of spending on something monthly that they can really live without.

Part of staying free of unwanted expenses is knowing which expenses are worth avoiding and which are not, and taking steps to cut back on the latter.

3. Be systematic

If you’re not yet used to the idea of ​​saving with all of your income, chances are good that your first few attempts to put some money away will be inconsistent and spotty at best.

But if you really want to save some money for future considerations, sometimes sticking to a proven formula can be a good start to disciplining yourself with money.

One such popular formula that is becoming a cliché among money-conscious people is the “80-20” rule, which suggests saving 20% ​​of all your income, no matter how small, while spending 80% freely. .

bills

4. Learn to invest

Let your money work for you. Don’t get into the get-rich-quick investment scam and promise a very high ROI (return on investment). It is possible to earn high returns in forex trading and stock trading, but there is no guarantee that you will make continuous profits due to the ups and downs of the market.

There is always a risk in every investment. Read books, attend seminars and courses on investments. She try to learn short and long term investments, high yield investments, stocks, mutual funds, UITF.

Know the difference between investing and trading. The investment is long term, you will buy, hold and sell after several years. Trading is short-term, meaning if I buy today, I sell after a few days, weeks, or months. In Forex trading, other traders buy and sell in seconds, minutes and hours.

invest

5. Earn some extra money

With so many channels that you can play online, mobile or in real life scenarios, making money has been made easier as long as you have access to these mediums.

When you’re having trouble making ends meet and making way for savings, sometimes building multiple streams of income can be the best option just to save.

Tap into what’s accessible to you, like selling assets you no longer use or offering services as a freelancer, and make sure that no matter how much you earn, you keep something for yourself to benefit from in the future.