Wednesday, August 15, 2012

10 Wise Tips about Savings

10 Wise Tips about Savings

A penny saved is a penny earned.
~-Benjamin Franklin

Saving is a habit and it is the starting point of building your wealth and getting financial freedom. The most important question is: How do you save effectively?  Here are some ideas about savings:

1.      Earnings: Even when you can make a lot of money, if you don’t save, it means nothing at all.

2.      The money is not yours: The money you have made is not yours. The money you have saved is yours.

3.      Work: You may not be rich even if you work smart. You have to save like no other in order to be rich.

Don't spend your life working for money; save money and hire it to work for you.
~Dr John F Demartini

4.      Spend: When you spend money, you do it for others.  When you save money, you do it for yourself.

5.      Pay yourself first: When you spend and then save, there is nothing left to save. If you save and then spend, you will see your savings.  

6.      The effective way to save: Don’t think of savings only when you have more money. You have to save first to see your money and savings.

7.      Discipline: You may be saving regularly for many purposes such as an emergency fund and for investment to build your nest egg. If you don’t control your urge to spend, you may spend it to get what you want for the money you have saved.

8.      Debt: When you are in debt, the first thing to do is to clear your debt because the interest you can earn for your savings cannot outpace the interest on your outstanding debt. Save when you are debt free.

9.      Spend less than you earn: Prepare a budget, allocate an amount for savings every month and then it is safe to spend the rest.

10.  More ways to save: Save part of your annual increments and bonuses. Save when you get a tax refund.  Save when you spend less than what you have budgeted. These items are not in your regular income budget, I am sure your can save part of it if not all.    

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