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How to Be Practical When it Comes to your Savings
Practicality involves the actual doing rather than theories and ideas only. It is a practice which will have a beneficial gain to us.
When it comes to our savings, how practical are we? How do we make sure that what we are doing can actually benefit us and save us more? And how do we manage to keep a healthy bank account?
Practical savings doesn’t just involve big amounts. It also means that you are smart enough to save a bit everyday under any circumstances and through minimizing your spending habits. Don't just spend and spend but also tend to save.
There are a lot of unnecessary things that you do every day that is just a waste of money and time. Try to manage the in and out of your money to be able to save an amount for future use.
Here are some practical tips that you can do to help you save:
- Save a portion of your income. When it comes to effective savings, whenever your salary arrives, deposit a small portion of it in your savings account. Or better yet, sign up for an automatic savings plan so you can be assured and secure even if you forgot to deposit your money.
- Pay your bills on time. It's a reality that we need to pay our utility bills like electricity, water and telephone or internet. Pay these bills as soon as they come and don’t just cast them aside. Sooner or later, we still need to pay them but with additional interest and other charges. If you can’t pay all the balance stated, at least pay the minimum amount due.
- Always use your credit card wisely. Credit cards are best in handling out-of-cash emergencies and other needs online. Try to use cash or debit card when you shop and limit your credit card usage. Credit cards have high interest rates and when you can’t pay these for months, you will eventually be drowned into debt. Better use cash for you to learn to live within your means.
- Try to entertain yourself and your family in a healthy and frugal ways. Always eating out every day? Try to cook at home and enjoy fresh meals. Restaurants charge at least 30% high for their menu. Go for fish and vegetable to develop a healthy lifestyle. Want to go to the movies? Try to rent a DVD instead. It is much cheaper and with a price of one, your whole family or friends can enjoy it too.
- Sign up for frequent-shopper cards to avail of points every time you shop. When these points get accumulated, you can redeem by converting it to cash or other terms applied by that shopping mall. Many cardholders are also entitled to freebies, special discounts and offers.
- Use coupons and deals when you got a chance. There are some deals that you could get up to 50% or even 80% off on their original pricing. Do your research first when you plan to buy something expensive, read reviews and check other alternatives.
- Try to use public transportation instead of using your own car when possible. You can save on gas as well as not contributing to environment problems. The fare is also much cheaper and this is usually less stressful.
- Avoid impulse shopping or buying. We always have this tendency to buy what we just saw just because it catches our eyes. But in reality, we just don’t need it. So try to list first and plan for your next trip. Stick on your shopping list and on your allotted budget.