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The Secret of Saving Money
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.
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.