How to Save for Rainy Days
When it comes to savings, many people fail to accomplish it. No matter how many books you have read for acquiring tips to save for the future, but your expensive hobbies and addictions are lurking in the corner of your heart-- you cannot really do it.
To save your money to last for the future days is very hard to accomplish. Yet, with determination and confidence in your part, then- you can really do it.
Practical Tips to Save for Rainy Days
1. Distinguished between your needs and wants.
What is more important to you? Your wants or your needs? Of course, your needs are your top priority. Your wants such as: smart phone, mac computer, new watches, branded clothing, and others are not as important as your needs.There are only three major needs that human being required in order to survive; Shelter, Clothing and Food. If you can support yourself with such needs, you don't need to spend more money in order to survive.
2. Spend but don't overspend.
If your income is enough for you to spend for the whole month including your rent, bills and other payment, do not spend more than what you earn. It is not wise and it will only pile up your debt by using your credit card, which lead me to my next point.
3. Be smart enough to use your credit card.
Using your credit card wisely is the wisest thing you can ever do. Avoid using it like it is your cash money. Spending it too much makes you poor and it is one of the reason why you can not save. Paying for monthly interest will only give you hard time to save.
4. Always know your limit.
Limit yourself to your needs. Shopping too many things would only increase your monthly debt. Evaluate your financial situation and make sure that you are not spending your whole monthly income or overspend more than your income.
5. Your asset and liability
Watch out for your assets and liabilities. Know what your liabilities are and don't depend the thought that you have more assets to spend. Always honor this golden advice, "Always stick to anything that gives you money, which means take value of your asset. And watch out for the things that take money away from you"
6. Invest your money to grow.
Find ways that doubles your money in three years time or more than ten years. Always look at the big picture. If you have knowledge in stock market, then--invest. Take time to study the stock market if you don't have knowledge about those. But, be very careful in investing.
7. Buy practical things.
Cell phones and other technologies are necessities to survive these days. But look for the smartest way to spend your money in cell phones. Smart phones are not necessary if your are just needing the phone by communicating with your love ones. And if you are in business and it is indeed important for you for Social Network, find the best package deal. Always remember that your goal is to save.
8. Have a mini-notebook that records everything you spend.
Everything you spend should be recorded in order for you to know how much money that comes out from your account. To record your expenditure is the wisest thing you can do. It is to determined what are the things that you need and you don't need.
9. Value Your Hardwork.
By acknowledging your hardwork, you would value the money that comes with it. Whether you are working hard for the money or working for the sake of working, you still deserves the money that comes along with your hard work.
10. Try to save half of your salary each month.
If you save half of your salary each month, you would never worry about your financial situation in the future. You monthly savings are also your ticket toward your rich and rewarding retirement years.
Save now. Save your money to last.