4 Saving Tips
We all love spending our money and sometimes we lose control and the overview of our spending habits. It is so easy to purchase goods online, we just need a couple of klicks and payment is so easy as well. We do not even see the money we are spending, because we use credit cards or other forms of online payment. This supports the fact that we lose control over our spending behavior and leads to surprises at the end of the month.
And at the end of the month, we are wondering what happened to our money and we realize that we do not have enough money to save for later. But how can we change this? We have to change our habits and I will show you 4 tips, how you can improve your saving habits:
Tip 1: Save at the Beginning of the Month!
It is a common mistake to save the leftover money at the end of the month. But you won’t have a lot of money left, because people tend to spend the money they have. If you save your money at the beginning of the month, you cannot spend it anymore. You can use different apps, which take automatically away a certain percentage of your payroll. Also, you might think know that you will face troubles, because you have less money during the month. But this is wrong – you will adjust your spendings behavior accordingly to your budget and you will save more for your future!
Tip 2: Set Yourself Limits!
Monitoring your expenses and grouping your cash outflows into different categories helps you to get a better understanding of your financials. If you know, how much you spend on a specific category, e.g. for clothing, you should set yourself a lower limit for the next month and stick to it! At the end of the month, you can set the saved money aside and save money for your future!
Tip 3: Take Advantage of “Free Money”!
Money is lying around on the street – you just have to pick it up! There are so many ways, how you can get access to free savings. Your employer might offer a 401(k) retirement plan and might contribute a certain amount per year for free. There is also a way of saving taxes by investing your money. Get in touch with your tax consultant (if you don’t have one – get one!) and he will tell you, how you can save money by saving money – sounds weird, right? But it works…
Tip 4: Get a Piggy Bank!
Almost every kid has a piggy bank – but you should get one too! It is one of the oldest saving tips and it still works. Put all your change in your piggy bank. You will be surprised how much money you can save! In my experience, you can save about $1000 a year just by using your piggy bank. You do not even notice it on a daily basis, that you put money aside. But at the end of the year, you will have a nice surprise!