“Do not save what is left after spending but spend what is left after saving.” This was a famous quote by Warren Buffet showing the importance of saving money. This quote basically means that you should always reserve your savings out of your earnings and the balance from the money left should cover you expenses.
What then is the importance of saving money?
Saving money, will allow you to enjoy greater security in your life as you have money set aside for emergencies that could happen or any unexpected events. Saving money is also vital as it allows you to plan your short term goals such as travelling in the future or even buying a new phone giving you the opportunity to enjoy a high quality life.
The best time to save money is right now and we’re going to give you a realistic strategy and some of the straight forward ways you could use in order to save your earnings and get to enjoy a highly secure life.
The 30 Day Rule
This is a rule that cuts down on things that are simply wanted but are not necessary. Instead of spending money on a want or something you may not need, this method will allow you to take 30 days to think about it and if you still want the to make the purchase you can do so after the 30 days. This is a way that makes you reduce your impulse spending and get to increase your savings allowing you to control your spending and make the right financial choices.
Cut Down On Take outs.
This could be through reducing the amount of packaged meals and making an effort to eat home made meals. If you think about it, if you use $10 on a pizza every week, this would mean that you actually use $520 a year and this could be money used for other necessities so instead of going out once a week you could plan to go out once every month and in the end you end up using only $120.making you save $400 in a year.
Lower The Amount Of Energy Used
This could be through turning off all the appliances such as televisions and stoves when they are not in use. Another way could be through being eco friendly and this could be done though using solar energy for different purposes such as use of the geyser or solar lighting system and this is a way that will save you on the energy bill as you will get to pay less.
Without debt you will get to benefit from more savings as you’re not going to be paying interests or extra money for the debts you would have taken. This will be important since financial security is increased and you will also reduce the amount of stress you have benefiting your health.
Compare Prices Before Making Major Purchases
If you’re going to be shopping, be it wholesale or retail, you will need to consider setting aside some time to compare different prices for the products or services you’re looking for since prices vary in different places. This will give you value for your money and is also a way that will make sure that you get the best possible deal on the items that you would wish to purchase allowing you to find the item you want at the best price and saving you more money that could be used in the future.
Set Saving Goals
If you really want to be a better saver of money, then you should really consider setting saving goals and ways in which you will get to meet those goals. Some of the goals could include, saving for big purchases, setting a savings deadline, and setting the amount of money you’re going to be saving or percentage of money to save in a given period of time. this will enable you to save cash on the things that will help you the most.
Stay within Your Spending Limits
Mindless spending with no boundaries can result in you going over your budget and also lead to you being broke. Adding a restriction on the amount you spend is a great way of saving money as you can budget it on the more important stuff. Setting spending limits will be a good thing as it allows us to stay within our budget hereby reducing the chances of borrowing money after we have exceeded our budget.
A simple way to plan for unforeseen events could be through saving money and this could give you somewhere to start when an unforeseen event such as losing your job or even a natural disaster is to take place. To save money you could open up a savings account or you could even buy a safe to keep the money you would want to save for future generations. The other way could also be through following this piece of advice on the tips on how to save money.