Tuesday, March 9, 2010

Money Saving Tips

Here's a money saving tip I received from Cosmo.ph e-newsletter which I really agreed since I myself tried this tips and it really works.

"A penny saved is a penny earned" is an adage we have heard countless times not only from our parents but from our peers as well. But how can you save when you live from paycheck to paycheck? Here are a few tips you can follow to help stretch your money and to provide yourself with a few months’ worth of financial buffer.

Save BEFORE you spend. Most people only save whatever money they have left, which is usually…not much, if they even do have any. So as soon as payday comes around, remove a certain amount from your paycheck and deposit it immediately in an untouchable yet accessible account. If you haven’t started saving before, then you can start low, by saving at least five to ten percent of your take-home pay. Then once you’ve adjusted, increase this amount by another five percent or so. Be sure to do this automatically every month. If it’s possible to arrange with your bank to auto-deduct from your payroll account to a separate savings account, then have this fixed immediately.

Live within your means. This is easier said than done, especially when you’re a young professional. It’s difficult to say "no" to the lure of mall-wide sales, Friday night drinking with your buddies, or regular movie-and-dinner dates with your guy. But if it’s beyond your budget, you simply have to try and say that two-letter word.

Make a budget…and stick to it! Take time to sit and really think about where your money goes. Take a typical week and list all your expenses then—including those purchases you deem trivial. Sometimes, it’s those little things that add up to take a chunk off your income. Maybe you like having bottled iced tea everyday for lunch. You think, it’s just P15, right? But if you multiply it by 22, the average number of working days per month, that’s easily P330. If you can’t do without it, try investing in a tumbler instead then make tea at home that you can bring to work. This goes for coffee as well. When you review a week’s worth of expenses, you’ll see where you can cut down.

Think at least twice before you spend. I’ve learned to not do the groceries when I’m hungry and to stay away from malls when I’m not feeling so good. Otherwise, I know I’ll only end up spending more, sometimes on things I don’t even need or want. If you find yourself liking a pair of shoes, go home and sleep on it. Think about it first, and visualize yourself wearing it with at least three sets of clothes. If you think you’ll be able to wear it often, then it’s a good buy—that is, considering how much money you can spare.

Set a goal. Save 3 times of your salary at the end of the year.

No comments: