10 Effective Ways to Save Money

The time to save is now. When a dog gets a bone, he doesn't go out and make a down payment on a bigger bone. He buries the one he's got. ~Will Rogers

What are smart and effective ways to save money? I can think of the following:

1. Savings as an “expense” item in your budget: In your monthly budget treat savings as part of your total expenses so that you can leave it to your savings account. If you try to save whatever that is left over, there may be nothing left.

2. Balance from your monthly expenses: In addition to the monthly allocation for savings, you can save the difference between what you have budgeted (more) for spending and what you have actually spent (less).

3. Your annual bonus: Do you spend the full amount to buy what you want or do you save part of it? Bonus is not part of your usual income and the amount is not allocated to cover your monthly expenses, save it.

4. Your annual increment: What do you do with your annual increment? Do you spend more because you have more to spend? Why not save part of it?

5. Tax refund: Do you get a tax refund from your annual returns? This is an extra amount to save.

6. Pay off debts: Debt attracts interest and interest attracts more interest and you are paying interest for nothing. To keep your hard-earned money, settle all your debts as soon as possible.

7. Make extra income the easy way: One positive way to save extra money is to earn more by working part-time. What are your talents and what are you good at? Can you provide useful services and charge a fee?

8. Curb your wants: If you can discipline yourself, you can control overspending and avoid falling into the debt trap, you will save more money.

9. Trim your expenses: Look closely into your monthly spending and do away with unnecessary items such as entertainment.

10. Keep fit and avoid bad habits: Physical fitness is more than just for the sake of health. It is insurance against critical illnesses. Just imagine the huge amount you can save on medical expenses just by staying fit and healthy. The other issue which is relating to your health is smoking and drinking. By avoiding these bad habits you are not only saving your health but you control your purse strings as well.

Good health is not something we can buy. However, it can be an extremely valuable savings account. ~Anne Wilson Schaef

Make all you can, save all you can, give all you can. ~John Wesley