Tips to start saving money

Have goals while saving

This can be easy for short-term saving goals such as saving money to buy a camera, mobile etc. For long term goals, such as retirement, it requires a detailed level planning to see how you will be able to achieve you retirement goal and by what means.

Set a time frame

Set a timeline to accomplish short-term goals, make sure that the goal is reachable within that duration and reach it. If it is not reached, you can get discouraged.

Find out how much you need to save

Keeping in mind the thing you are saving for, calculate how much you need to save. Depending on the duration of your saving in attaining the goal you need to reach, figure out how much you will have to save per week, per month or per paycheck.

Have an eye on your expenses

Saving falls in between your earnings and expenditure. So it is very important to monitor your expenses. Make sure you record each of your expenditures every month and see if you have been living quite comfortably or living lavishly. Try cutting down your expenses and look at priorities while doing them.

Reassess your saving goals

Once you’ve taken a good look at your expense list and found out that you can cut some expenditures, they will fall into the savings list by the next month. This way you will need to start looking at saving more as reassessing your savings. The best way to find out the maximum amount that you could save is by simply subtracting the expenses (you can’t live without) with your income.

Have a savings account only to accumulate your savings

It becomes easier to track your savings if they don’t merge with your expenditure. There is also an interest that adds to your savings which the bank provides.

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About the Author: Soumava Chakraborty