ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The Secret of Saving Money

Updated on August 18, 2014
Source

Saving Money Tip

'Pay Yourself First' means to automatically take money out of your salary / wages and put it into some form of healthy saving account. This is done before you pay any of your bills – mortgage, credit cards, living expenses or buying any discretionary items. This is a good way to save money.


'Pay Yourself First' before you pay any bills. By paying yourself first you remove the temptation of spending the money you should be saving. If you approach saving this way you will find that you are surprised at the amount you can accumulate over a period of a year. If you do the alternative, which is to save what you have left, you will find that you don’t have much to save, unless you are very disciplined.This is one of the best ways to save money as you will quickly save money but yet still pay your bills.


Even if you only pay yourself 10% of what you earn in a week , this can quickly add up in a year. For example, you make £300 a week net. You save £30 a week - that equates to 52 weeks x 30 = 1,560 in a year. Can’t afford 10% , then you can do 5% which would equate to £780 in a year. May not be a million, but no one is going to give you that £1,560 OR£ 780 without charging you a lot of interest. Plus you will earn a little interest on that.

For many years I tried in vain to save and found it almost impossible. I copied every saving tip but was unable to start as I always put bills first. I still do not find it easy, but by paying myself first it has become a goal that I can reach. I started with a small amount, saving just £30 pounds a month and then increased it when I had an increase in my disposal income. I think there is no point in starting with an amount that will be out of your comfort zone and will result in not being able to maintain consistent savings. I have also found that the best account for me was a savings account where you could not withdraw the funds unless you closed the account. The best way this works is if you have one savings account where you cannot withdraw unless you close the account and another where you have access to your saving.


Save all Your Extra Money
Save all Your Extra Money

How To find the Money To Save?

Calculate your income and expenditure.

If your expenditure is more than your income, then consider ways to change this- seek advice about how you could lower your monthly expenditure.

Cut up credit cards and use your own money.

Cut back on expenditure and save money on - grocery bills, going out and utility bills

If you have no extra to save, get a part-time job, mystery shop, sell books on amazon or clothes on Ebay, have a yard sale, teach a subject you know or do errands for friends for a small fee or do some film extra work. I have done all of these so if you want some advice or information on any just send me a message.

Once you have done all the above you are ready to start saving money.

It does not matter how little you save, the trick is to do it on a regular basis and have an account that you cannot access unless you go directly to the bank. Set up a standing order that immediately takes your savings from your bank account.

Work out how much you can save and open a savings account that allows you to save regularly, but not access your money.

Have a goal and time limit. What are you saving for and when do you want to use the money?

Save any extra money you get or at least put away a small percentage of it e.g. tax refund, gifts and overtime payments.

Once You start you will not want to stop.

Comments

    0 of 8192 characters used
    Post Comment

    • jaswinder64 profile image

      jaswinder64 

      6 years ago from Toronto, Canada.

      I love to save money. Thanks for writing this article.I try to save even though I save a little.

    • zanin profile imageAUTHOR

      zanin 

      7 years ago from London, England

      Thank you for your comment, Jandee. Nina

    • jandee profile image

      jandee 

      7 years ago from Liverpool.U.K

      Good sense and enjoyed article,jandee

    • zanin profile imageAUTHOR

      zanin 

      7 years ago from London, England

      I think children should learn about money from an early age. My children save 10% of any money they get. Thanks Denise.

    • denise.w.anderson profile image

      Denise W Anderson 

      7 years ago from Bismarck, North Dakota

      We taught this principle to our children and it helped them and us to be self-sufficient.

    • zanin profile imageAUTHOR

      zanin 

      7 years ago from London, England

      Thank You Guyana. I hope others see this hub and are inspired to save.

    • Guyana Masala profile image

      Guyana Masala 

      7 years ago from New Jersey

      ...you know what? That makes such perfect sense. This is exactly how I began to see my hard work...I learned to treat myself & never feel guilty about it. This concept definately needs to be shared with others.

    • zanin profile imageAUTHOR

      zanin 

      7 years ago from London, England

      Thank you. Most grandparents are very good at building up savings. You have learned from the best - grandmother is always right. Thanks for the vote up.

    • Brinafr3sh profile image

      Brinafr3sh 

      7 years ago from West Coast, United States

      That makes sense,. . . . my grandmother always taught her grandchildren to "save for a rainy day". And "paying ourselves first" is the same concept. thanks (vote up, useful)

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com 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: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    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 googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    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)
    Marketing
    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.
    Statistics
    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)