21 C
Dhaka
Friday, January 27, 2023

How to save money

We all want to save money. Sometimes the hardest thing about saving money is just getting started. This step-by-step guide for how to save money can help you develop a simple and realistic strategy, so you can save for all your short- and long-term savings goals.

Use these money-saving tips to generate ideas about the best ways to save money in your day-to-day life.

Make a budget

Once you have an idea of what you spend in a month, you can begin to organize your recorded expenses into a workable budget. Your budget should outline how your expenses measure up to your income-so you can plan your spending and limit overspending. Be sure to factor in expenses that occur regularly but not every month, such as car maintenance.

Stop smoking

No, it’s certainly not easy to quit, but if you smoke a pack and a half every day, that amounts to nearly a year you can realise in savings if you quit.

Record your expenses

The first step to start saving money is to figure out how much you spend. Keep track of all your expenses-that means every tea, household item and cash tip.

Once you have your data, organise the numbers by categories, such as gas, groceries and total each amount.

Use your savings goal planner

One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for-perhaps you’re getting married, planning a vacation or saving for retirement. Then figure out how much money you’ll need and how long it might take you to save it.

If you’re saving for retirement or your child’s education, consider putting that money into an investment plan.

While investments come with risks and can lose money, they also create the opportunity for growth when the market grows, and could be appropriate if you plan for an event far in advance.

Control your impulses

Credit cards, ATMs and online shopping make it easier than ever to spend money. Especially on things we want rather than need; the extent to which we succumb to temptation typically boils down to our willpower. Studies have shown that self-control is a bit like a muscle that tires out with use.

Ironically, it’s the willpower of poorer shoppers that tends to get depleted the most. This is a result of the fact they face repeated, difficult financial decisions.

If you see something you want, wait at least a day before you buy it – 30 days if it’s a non-necessary big purchase.

Decide on your priorities

After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings.

Be sure to remember long-term goals-it’s important that planning for retirement doesn’t take a back seat to shorter-term needs.

Learn how to prioritize your savings goals so you have a clear idea of where to start saving. For example, if you know you’re going to need to replace your car in the near future, you could start putting money away for one now.

Watch your savings grow

Review your budget and check your progress every month. Not only will this help you stick to your personal savings plan, but it also helps you identify and fix problems quickly. Understanding how to save money may even inspire you to find more ways to save and hit your goals faster.

Show Articles
Related articles

Economic crisis: Pakistan is Following Sri Lanka; How and Why?

All indicators of the Islamic Republic of Pakistan's economy are now negative. Pakistan's foreign currency reserves, especially the dollars, are depleting daily;...

Bangladesh: Economic indicators reflect optimism

Following the war between Ukraine and Russia last year, several derogatory remarks regarding the economics of countries like Bangladesh have come from...

Islamic Finance in Bangladesh

The Bangladeshi Islamic banking and finance industry witnessed a flurry of activity and received stronger governmental support in the last two years...

What is Economics? Definition, scope or subject matters of Economics?

The term 'Economics' is derived from the Greek word 'Oikonomia'. 'Oikonomia' means 'Household Management'. Greek philosopher Aristotle said, Economics is the science...
Related news

Forming human capital: Quality education a must

Education is one of the most powerful weapons which can change people, communities, nations, the future of humanity, and thus the entire...

K2: World’s second highest mountain peak

K2 is the second highest mountain peak in the world after Mount Everest. Its elevation is 8,611 meters (28,251 ft) above sea...

Economic crisis: Pakistan is Following Sri Lanka; How and Why?

All indicators of the Islamic Republic of Pakistan's economy are now negative. Pakistan's foreign currency reserves, especially the dollars, are depleting daily;...

Why Shakib Al Hasan challenges Bangladesh Cricket Board; cites Hindi movie Nayak

The Bangladesh Premier League (BPL) is one of the Twenty 20 (T20) cricket leagues in the world. Nazmul Hassan Papon, the president...

LEAVE A REPLY

Please enter your comment!
Please enter your name here