6 Smart Ways of Saving Money in 2018
Stressing out over cash can be very stressful. But by simply taking control of saving and spending, you can easily ease some of these worry. Whether you want to save enough for your retirement or want to stop spending your paycheck before you receive it, there are several ways to tuck away a little cash. Becoming a millionaire is not about massive inheritance or family name and success. Some of the millionaires are entrepreneurs and others are everyday people who know how to control their finance efficiently. The one thing common among these people are they love making and keeping their hard-earned money. So, let’s check out some of the basic yet smart ways of saving money.
Use Cash Instead Of Credit Card
Try to start only cash and no credit card diet for at least two months. You can allot yourself a fixed amount for a week to spend on everything apart from your rent and electricity bills. Try to keep a record of every penny you spend. You can either use a spreadsheet or write it down so that you can know what exactly you are buying and where you could make cuts.
First Pay Yourself
One crucial thing that you should do before you spend your money on eating out and shopping is to first invest in yourself ahead of anything else. It is recommended by most experts to set aside at least 10 percent of your monthly income into your retirement account or saving account. Once you have put aside the money, you can use the remaining amount to pay for your other requirements.
It is essential to automate your saving as much as possible. Make sure you set up automatic way when you pay yourself so that you do not even have to think about it. Most people who have used this method has found that they easily got used to living on a little less and soon they stopped missing the amount that they were paying themselves in their savings account. Once you forget about your automatic savings, it will keep growing. If you follow the rule to pay yourself first for over a lifetime you are sure to get some fantastic results.
Do not bother skipping coffee, instead think bigger. You cannot expect a raise in your wealth by just skipping a cup of coffee. You should have better ideas such as setting higher savings goals and investing first in yourself. Besides, automated deduction or transfer to yourself will definitely help you to become a millionaire automatically.
Have A Spending Plan
The best way to save money is to create a spending plan or a budget. A budget will help you to figure out what your income is and what exactly your expenses are. It is important that you figure out how much money you need every month to live comfortably and pay your bills. Spend only what you need to spend and save the rest. Try to figure out where you can cut back and curb your spending and it will be easy for you to achieve your own financial freedom. You can also look out for ways to reduce your expenses and increase your income.
Use One Or Multiple Savings Account
Keep things simple. Ideally you should have an emergency fund account, one saving account for major purchases and a retirement savings account. But if you find this too much you can simply start by putting all your money into one saving account and start growing your savings from there. You can find banks and credit union offering free savings account. So you can easily open up several savings accounts and every time you get paid put money into each of these accounts for different thing that you are saving for. This will help you to keep your money safe from being spent accidentally.
The best secret to saving money the smart way is to identify what you are spending money on and plan your spending accordingly. Having control over your spending will help you spend money on your savings.