In one newspaper today, I have read this article that I wish to share in this forum. It is about saving money and being free from debts. And although most of us already know these 5 points below, I’m sure there are others who would appreciate knowing them. 1) open a savings account - this can motivate you to save 2) identify expenses to be cut - you will discover expenses that are not a necessity 3) learning to budget money - spending will be regulated 4) recovering from debts - hard part but you can do it 5) considering investment plans - another motivating factor to save more
All these what you have read from the said newspaper are challenges which one or two could be fulfilled by others. I have a bank savings account but it is not as essential as it should be. What has been left is a small amount every time I withdraw it. Anyway, it takes a self-discipline to do all those things. Though it is difficult but it is possible.
@Alexandoy I have saved a good amount money since last year, but I would like to "move" that money, I do not just want save that money. Would you advice me to invest my money in financial market ? Did article talk anything about investments?
With huge fuctuations in investment market due to lots of political changes it is hard to predict the outcome. I rather invest in albeit slow but sure income earner like fixed deposit.
Thanks for the tips to save money. We have sales locally every week too from stores. CVS, Walgreens, Don Quiote Supermarket, Target ads comes out on Sunday newspapers. On Wednesday, other supermarkets like Safeway and Times has ads in our localLog In filled with money savings for the week that helps you budget and saves you lots of money. The stores has online web sites too to check for added savings. There is also Ralph's Supermarket online too that has lots of savings for shopping at their stores too. Sales are absolutely wonderful to save lots of money as well as your tips.
We could save some money, but that has to grow as well. Given inflation, static saving will not be able to serve us in future. The world economy is pretty unstable. Now a days, we get a meager interest from the saving bank accounts. I'm keen to make savings for future, but pretty unsure where to keep it to be able to get an adequate growth.
@Alexandoy Thanks a lot for sharing these valuable tips. All suggestions are useful but not easy to follow for a person like me. Saving money is the most difficult thing for me. On the other hand I always end up spending more than my budget. I tried several methods including the ones suggested by you; but in vain. I think what is required is a definite change in the mindset and as you said we can find many areas where we can cut down our expenses. Instead of saving account I opened a recurring account where I have to deposit a particular amount every month. Here I have no other excuse but to go on with the investment.
To be honest, we also have a surplus of money (around $10,000) which is resting in my wife's bank account. The interest for investment here is not much unlike in the 1980s when time deposit can yield up to 16% per annum, now it is just 2% so again, it's not worth the risk. At least in the savings account, it is protected by the insurance so we still get our money even if the bank goes bankrupt. In your case, check for the interest rate and go ahead if you think it is worth the risk.
I think habit takes a lot of time and money to form. I have found out that some of the time saving requires some level of efforts. And it may not much add up in that case. You can see that one has to just start seeing the snowball effect. And once the money starts rolling in. It just keeps on adding. And that's what matters in the saving and spending cycle of the finances. That's what I have learned.
I am thankful for this post since I have learned more. I have not practiced point number 5 yet but I do agree that investing is beneficial. I have learned how to budget for money especially when I want to shop. I have also cut on expenses by not spending on things I don't need. Saving is a task but once you get yourself into the routine, saving becomes a part of life.
Having a savings account and actually saving are two different things. I agree with you @Alexandoy that it's good to cut on some expenses that are not necessary. Like I shared in another post, if you can live without a certain item then don't buy it. Also.... After a few months of saving you should work on investing so that money can work for you. There are many ways to invest that are less risky and this will help in balancing your savings account especially when it's affected by factors like inflation..
Honestly, I feel this was the goal that I will be targeting this year and see how far that I'm going to go with that in the sense that I have been spending on things that I don't really feel that I feel that I should spend on. I'm looking forward to saving up some good amount before the year runs out.
You raise some good points @Alexandoy but I know people who are not able to manage money no matter how much they have .. it seems to burn a hole in their pocket. My granddaughter's other nanny earns more than I do but she is constantly borrowing from me because she can't make ends meet and she has no dependants. In the past she has given me money and asked me to keep it for her so she will not spend it all at once but she would keep coming to my house and asking for various amounts and before long she was back where she started.
