Personal Money Saving Tips

In times of hardships, it pays to have some money saved up for just such instances. Saving a bit of one’s earnings on a regular basis can only be appreciated in times when the money set aside suddenly becomes a great help during rough times. It pays to make saving a habit. Here are some important personal money saving tips to help you start the habit easily.

Make your money harder to spend.

Many people find it hard to keep a portion of their money for the rainy days simply because they make it easy for themselves to get some whenever they want to. It can be easy for anyone to spend all the money inside the wallet without ever thinking about it. This will result in more money spent instead of saved.

One trick to saving is by trying to make it harder to gain access one’s own money, at least for easy spending. A good way to do this is by putting some of the money you have out of reach by putting it in a bank once you receive it. Another way is by putting the money on your retirement account at work.

Money is automatically deducted from your pay check and goes its way into your retirement fund. This happens before income taxes are accounted for in your pay check. This way, not only are you making your money harder to spend by putting them somewhere else, you also enjoy reduced tax payments.

Consider limits for spending windfalls.

Windfalls such as bonuses, tax refunds and some garage sale earnings can easily be considered by many as found money. They are the kind of money that people do not usually expect to receive or get and therefore they consider spending on luxuries.

No matter how big or small such windfalls may be, it helps in trying to plan carefully on how to spend them. This does not mean that you rob yourself of some bit of luxury. But try to save up a portion of it for the rainy day at least.

Consider saving paper money in your piggy bank.

It can be easy for people to save up loose change and put it in their piggy bank. But in these days, it won’t usually amount to a lot. But people keep on putting coins in piggy banks just for the simple reason that it was how they were taught.

Although practicing such a habit is already a good gesture when saving, why not bring it up a notch? Why not consider also putting in paper money inside your piggy bank? That would help increase your savings considerably without even much thought.

Consider other alternatives to spending.

People generally spend for enjoyment and luxuries. That is where a lot of people seem to fail when it comes to saving. A lot of people equate spending money in order to enjoy life.

But if you wish to motivate yourself to develop the habit of saving this will need to change. You will need to look for alternative means to enjoy without spending a lot like before. There are still a lot of activities that you can enjoy doing with less spending.

Instead of frequenting the malls to unwind and be tempted to spend, why not read a book, watch a video at home, or spend time with friends? Any alternative is good as long as it helps you save.

 

Posted by Ardent Editor on Jan 22 2009 in Money 101

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