Proven tips on how to save money

Research shows that most of the resolutions that people make at the start of the year or any other period for that matter are mostly financial goals and if not, they are in one way linked to finances. Research has also shown that most of these resolutions do not come to pass, people fail to achieve the goals that they set for themselves. While there are a variety of reasons behind this failure, one main reason is that they fail to save enough money that will help them in achieving whatever goals they had set. In light of this, this article seeks to share proven tips on how you can save money and achieve your goals.

Record Expenses

When it comes to saving money, you need to know how much you spend and where you spend it. This means you have to come up with a record of all your expenses. Record them all including those expenses that you think are insignificant as every cent counts. Record how much you are paying for rentals, for your grocery, for transport, lunch and if you have expensive hobbies, record them also, it does not matter if the hobbies do have the potential of earning you some money such as online gambling at sites like casino.netbet.co.uk  .Also, take into consideration some expenses that do not come monthly but regularly such as car insurance and maintenance if you have a car.

Make your budget

Once you have recorded your expenses and have an idea of where your money is going, you can now make a budget. On one hand, write down your income and on the other hand, list down your expenses. Add the total cost of the expenses and see if they are below or over your monthly income. Once done, start cancelling out or limiting the amount you spend for some expenses.

Make a plan on saving

When you have an idea of how much you are spending on expenses, the next step is to come up with a percentage of money that you need to save. This can be anything from 10 to 20 percent or even higher if funds permitting.

Decide what you want to save for

The next step is to decide what you want to save for. You can only stay within your budget if you know what you are saving for rather than just saving for no apparent reason. Here, you have the room to save either for the short term or for the long term. For the short term, you can set goals such as down payment for a car or a car rental. For the long-term, you can set goals such as down payment on a home, retirement package or your child’s education.

Watch the savings grow

With everything set up, the next step is to live within your budget. This means you have to strictly abide by it if in any case you find yourself struggling to live within your set budget, it’s advisable that you open a savings account and deposit the amount you want to save in the account at the end of the month when you receive your monthly income. This eliminates any probability of using saved funds.