ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to start saving money and get richer

Updated on May 4, 2013
Money Saving Cycle
Money Saving Cycle

This is a very hot topic ‘Saving Money’ if only we all heeded advice given by our parents and financial experts we would all be in a better position and therefore the downturn in the economy may not have affected so many of us this bad.

The fact that spending is hard to control for many of us, is not our fault it is the system that we live in, it drives people to craving for material things beyond ones financial capacity. Gone are the days when people saved up for something that they wanted, now it is an ‘age of buy now think later’.

This attitude to life and material acquisition has led to money troubles for many in society to the extent where they have family breakdowns, mental illnesses, financial ruin and so on.

It is therefore important that we as individuals accept the truth that spending uncontrollably is not beneficial to ourselves or the society. We must accept that our spending habits need to be moderated. It is only then can we really benefit from saving, if you are still interested in saving and getting richer over time then read on.

Once you adopt the strategy below make sure that you follow it and monitor your progress it is only then, you can see the benefit, otherwise you might as well carry on what you’re doing fighting and struggling from one pay cheque to another.  Don’t get me wrong you may not be struggling in which case you’re a lucky person, you don’t need to read anymore sit back and chill.  For the rest of us read on....

Cut out unnecessary shopping...and if she's got your card then get it back!
Cut out unnecessary shopping...and if she's got your card then get it back!

Setting a personal budget is important for many reasons, some people don’t even contemplate having one simply because they don’t care or they would rather navigate their financial affairs without knowing, as having knowledge of their financial position will necessitate change, some people do not want change and therefore ignore the basic of personal money management task – creating a personal budget.

When you create a personal budget you will instantly see your earnings (incomings) and expenditures (outgoings). You cannot save money unless you know how much money you have coming in on a regular basis, and list how much money you have going out. With a personal budget or personal financial plan you can see at a glance all your income and expenses, from that data you can quickly identify areas where you may be able to save money or cut back on expenses.

Without a personal financial budget it is difficult to plan and save money over a period of time. Now that you have read this far it shows me that you are concerned about creating a personal budget, a budget is the first step to your financial freedom and the start of your journey to becoming a richer person in the future (I say future because no one achieves financial freedom without hard work and patience, not unless they win the lottery or receive wealth through inheritance).

I used Microsoft Excel 2007 to create and maintain my personal budget it gives me complete flexibilityin how I keep track of the information. If you are not an Excel person and cringe at the mention of the word spreadsheets then don’t worry there are many software products on the market that allow you to quite easily create, maintain and monitor your own personal financial budget. I would recommend you use Quicken Starter Edition it is very easy to use and manages all aspects of personal finance and money management. Tracking your money matters becomes easy with this tool and you can even get really nice graphs so that you can pin-point how much you spent on buying gifts for your mother-in-law last year as an example.

Create a list per debt item similar to that shown above.  Use an Excel spreadsheet that will make management of the list easier.  List your debts and identify high interest rates, pay those debts off first.
Create a list per debt item similar to that shown above. Use an Excel spreadsheet that will make management of the list easier. List your debts and identify high interest rates, pay those debts off first.

Analyse Debt and control

We all have some debts and need to carry it through the best part of our lives, things like a mortgage to purchase a home or finance to purchase that much loved BMW. I would draw a line under the mortgage, the rest of life’s debts like credit card for that extra clothing item which you purchased before payday or that little summer break you took even though you had no money, the loan that you took out to buy that expensive kitchen or conservatory are things that you could really do without. To save money from now on you will stop spending on credit cards, taking out loans, buying unnecessary material objects (clothing, electrical items, gifts etc). That is, until you get to the position where your income is greater than your expense and you have savings sitting in a bank account. You can then live the lavish lifestyle you wish.

Some financial experts usually say that you can use your credit card as long as you make it an absolute rule to pay off your outstanding credit card balance every month before incurring any interests, therefore saving you money – I don’t accept that. We all like to think that we have the discipline to do this unfortunately many of us do not really have that ability to resist temptation when out shopping, in which case we need to refrain from using credit cards full-stop. Otherwise we end up in debt paying extortionate interests rates.

You can download and use the free excel spreadsheet above to list and monitor your debts, or if you prefer use Quicken to monitor your debts over time. To start with listing your debts I would recommend you draw up a list as follows:

Distribute your savings
Distribute your savings

Save Money regularly

Saving money does not have to be that difficult, if you plan and make it a habitual activity.  Try to save each week or month get into the habit of putting a manageable amount aside, it does not have to be a huge amount, start small and build up when you can.

Once you have completed you personal budget you will be in a position to determine how much disposable cash you have in hand each month.  Take a portion from that assume you have left £100 per month spare after all your expenses, I would recommend you divide that money up and distribute it in the following way:

The difficult part is to take the first step and start saving money, if you find that it is impossible for you to save money once you have it in your hands then consider having money deducted from your pay direct each month. By saving money on a regular basis you will quickly build up a reserve and you will gradually feel motivated to save more.

I have setup my account so that, soon as my salary comes in to the account a set amount is distributed to my other accounts including my savings account, each month I am comfortable in knowing that I have some money put aside for my future and for those unfortunate rainy days.

I also have a salary direct share savings account it takes a chunk of my salary and invests it into my employers share scheme, using this method, saving money and achieving financial freedom becomes that much easier.  

Use less & resource conservation

Use less and conserve resources - what does that mean? ...

All of us live in a consumer society where over spending, over eating and waste is a huge problem. This saving tip is a lesson we all need to learn so that we can become better money savers.

So how do you use less and save money?

Think for a moment – your electric bill, are you paying more this year per month or quarter than you did last year?  Most likely the answer is YES, in which case you need to evaluate resource conservation methods.  There are many ways and I am not going to list all of them here.  For a starter consider using less electric:

(a)   By investing in low energy light bulbs,

(b)   Only boil water that you will use in your electric kettle,

(c)    Taking shorter showers especially if it is an electric shower.

If we could all use and consume less there would be less waste, less power consumption, and the benefits for you are MONEY SAVING. This is just one example if you analyse your resource consumption then you will very easily identify many more and if you work on reducing excess consumption you will start to see savings through smaller utility bills, shopping bills and so on.


    0 of 8192 characters used
    Post Comment
    • Zubair Ahmed profile imageAUTHOR

      Zubair Ahmed 

      8 years ago

      Thank you froch,

      I guess it helps to make my hubs more informative and breaks the text up, the tool is available I might as well use it.


    • froch profile image


      8 years ago from Tychy

      I can see that you love MS Word graphics ;-)

    • Zubair Ahmed profile imageAUTHOR

      Zubair Ahmed 

      8 years ago

      Hi Sophie_allen,

      Many Thanks for your comment. It is amazing how many ways we can save money.

    • sophie_allen profile image


      8 years ago from Washington D.C. USA 20002

      Electric bulbs, electric kettle and even a gas fireplace can cut down electric bills. And people should not consider credit cards as part of our income, their really not. Great hub! This is a good read.

    • Zubair Ahmed profile imageAUTHOR

      Zubair Ahmed 

      8 years ago

      Hi Roychoudhury,

      Thank you again for stopping by. Hope you are well. Just read you Hub on the 3 leaders. Very nice.

      Take care

    • H P Roychoudhury profile image

      H P Roychoudhury 

      8 years ago from Guwahati, India

      The hub contains very useful information. Thanks for sharing.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)