Many of us are guilty of spending more than we earn. This might put you in a financial bind and put you under a lot of stress.
In the past, if one person wanted a new car or a family vacation, they worked harder or longer hours to earn more money. If they didn't have enough money, some people used credit cards or loans to make up the gap. The problem with this approach is that it doesn't help individuals save money or control their finances. The idea is to spend less than you earn and then set aside a portion of that money on a regular basis. Fortunately, there are plenty of ways to spend less and save more.
If you are already earning more than you spend, send us an email (email@example.com) giving us some helpful tips that we can send out in our next newsletter for others to reap similar rewards. However, if your costs exceed your income, it's essential to devise a strategy to reduce spending or increase revenue.
Creating a budget is an excellent approach to start saving. A budget is a plan that helps you control your finances. A budget might include allocating money for short-term goals such as vacation savings or long-term goals such as retirement savings.
For example, Ryan is working as a Manager in one of the biggest Fuel Companies in the country his monthly earning/salary for that job is $1000, and his wife Marie also has a job in which she earns another $500 per month. All in all, their household income is $ 1500 per month. They usually spend $200 on fuels per month. For monthly food and necessities, they usually spend about $450, then they will pay $200 for both water and electricity bills, and then $50 each for Education, Life Insurance, and some debts, and after buying important needs they set aside the excess amount from their income and put it on their savings. While this strategy will not make you wealthy overnight, it will allow you to accumulate cash gradually and consistently.
Here are some suggestions to get you started
- Paper and Pencil
- Google Sheet or Microsoft Excel here is a template of Saving Budget Worksheet
- Our favorite application Piggy Goals: Money Saving
Once you get your salary, the first thing you can do is list down all your expenses and whatever remains will go automatically to your savings at the end of the day. It is still upon your commitment to achieve your goals of saving money while living the best time of your life.