Living in the high-paced world that we do, it seems more and more difficult to save up money. We are constantly bombarded with banks trying to give us credit cards or extensions on lines of credit. It seems that companies are even trying suck people in with 0% down payments. How can you avoid getting caught in those financial traps? What can you do to save your hard earned money? Tax Wise Accounting and Bookkeeping suggests the following six ways.
1. Make a plan and have a budget.
To be able to save money, you need to know where it’s all going. Be diligent and write things down. One simple system that people are using is the envelope system. Make an envelope for different categories that you need for expenses. Have envelopes for categories like food, rent, or clothing and fill them with the appropriate money. This will help you only spend money on things that are necessities.
2. Curb your envy.
Sometimes people can start to have competitions materially with their neighbours. This can be a trap if you’re trying to save money. A person that is always wanting will never be content. If we develop a bad habit like this, we will never be content with what we have even though we have accumulated a lot.
3. Keep it simple.
If you are always thinking about lobster, steak, and wine when all you can really afford is macaroni and cheese you will always have money troubles. According to one report, over half the people in India are living below the poverty line. For them, they have to be simple and focus on the basics. The same is true of people living in a prosperous country; living simply will help them be better budgeters.
4. Be content.
Some of the happiest people in the world are ones that don’t have a lot of money. They are happy and satisfied because their focus is on their family and friends, not material things.
5. Avoid all unnecessary debt.
There is an old proverb that says that the borrower is a slave to the lender. Isn’t that true! Of course, there are things that will make us go into debt. Some things like purchasing a house are just unavoidable. On the other hand, make sure to be extremely careful when it comes to credit cards. When people use them, they seem to always overspend because they can’t physically see the money leaving their account. Although cash is almost a thing of the past, using it can be a good way to keep expenses down. A lot of new banks have features that will send you a text message to notify you when you have spent money. This will serve as a mental reminder.
6. If you don’t have the money, just don’t buy it.
It seems a little old fashioned but it will help your money go a lot further. If you can do it, you will avoid falling into the trap of high interest credit cards. This practice is one of the wisest ways to keep out of financial trouble.
If you are able to apply these six suggestions, you should be able to save some money. It will tough in the beginning but like a fine wine, it will get better with time.