Saving Your Money: How to Make It a Reality

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Saving Your Money

How many times have you wished for a big lottery win? If you are like most people, the thought will probably have crossed your mind at least once or twice. Whilst a plump jackpot would be a lovely addition to your bank account, there is really only a very small chance that a lottery dream could become a reality. Therefore it makes sense to look at realistic ways to increase your assets without crossing your fingers in front of the TV late in the evening.

That is where the concept of saving comes into play. Many of us are well-trained in the act of spending, even with money we do not have sitting within a savings account! Saving money is an entirely different kettle of fish; it is all about living comfortably within your means whilst your money accrues to become a worthwhile asset.

If you are keen to have a few (or a few hundred or thousand) more pounds to your name, here are a few tips for making saving a reality:

Resist temptation
The very first recommendation for you as a new saver is to make it a bit easier on yourself by resisting retail temptation. Window shopping often sounds like a great idea when you want to avoid splashing the cash, but it is really easy to convince yourself that you need the pair of trainers you see in a window, or even a car on a showroom floor. By removing yourself from this situation for a reasonable amount of time, you may be able to learn to resist spending where it is not strictly necessary.

Find the right investments
One of the next things to consider is how you will actually go about saving your money. There are many different ways such as general savings accounts, ISAs and shares. It is worth checking the most recent rules and regulations regarding savings products as there may be something new that you don’t already know about. One example of this is peer to peer lending becoming included within ISAs.

Think long term
Of course, many types of investment require you to think about your income and your financial obligations. Many forms of investment have the chance to generate you more interest and assets if you are able to commit to a longer term product. That is why the rates for ISAs and shares differs – some will allow you to access your cash fast, whilst in others it is held for a pre-agreed period of time.

Keep up the good work
Once you are on your way to a more comfortable financial future, you will want to continue what you are doing. This can be difficult to achieve alone, which is why many financially savvy savers recruit the assistance of an impartial advisor. Financial advisors are a good bet if you want to find out about new products and ways to invest; and the best part is that your advisor will have your interests and specific situation in mind.

How to Build a Savings Cushion

Savings Cushion

Savings Cushion

When it comes to savings people get double minded and they start to think that it is really not possible to save money when everything around them is getting so expensive. But there is always a possibility that one makes a saving cushion on which one can fall back on at the time of need. There is always one thing that people can keep in mind and that is that people can build a savings cushion with ease. This can be done by not spending unnecessary on things that are not highly essential at the moment and that are not urgent.

Saving cushion can be built by a person when the person opens up an account. When the person opens up the account, that person would know that saving money would be of great value. When the person saves money and uses it at times of need, the person would get to know the real value of money. This way the person would be able to make a savings cushion for present and future. So the first step towards building a savings cushion is to make sure that the savings account is opened and that there is interest in savings.

Another way to build a savings cushion is that a person can invest that money in shares. Buying shares is a good option. Since the stock market is always changing there is an option for the person to sell the shares when the prices are rising and when a person thinks that this way money can be converted in cash and can be put into the savings accounts. This way a savings cushion would be made and one can then easily spend and at the same time save. So buying shares and selling them when the price is high is a really good option.

Building savings cushion can be easy and it can always provide you with funds whenever you need them. Another way to build savings cushion is by saving some amount of money from your income in your savings accounts every month and not spending that amount at all no matter what happens. This way you would be able to collect a great amount within few months. That amount can be used for many purposes in future that may include education, vacations and even investing in real estate. So, building a savings cushion is highly essential.

Savings cushion can also be build when many people apply for health insurance. This is also a kind of savings cushion for many people although it is life insurance, but many people also include it as one of the aspects of building savings cushion. Another way can be that people can build savings cushion by selling or opening up their small business. This way the money that would be collected can be put into savings accounts and can be used for many future tasks and purposes. If people want to read more about building savings cushion then they can always read that online and also pick up many ideas.

How you can save Money through budgeting

A budget can be one of the most effective financial tools if used correctly; however, setting up a budget can be a long, daunting process. Budgeting can be difficult as it involves being very thorough and honest while you write down all the details of your personal expenditure. On the flip side of the coin, if you persist and you come out of the other side with an effective budget, it can help you easily monitor your finances and save you money.

Budget and Saving

Budget and Saving

When you look at setting up a budget you should first set yourself an overall aim of what you want to achieve. Your aim should be measurable so that you can check how close you are to hitting your target. It should also be realistic, setting yourself an unrealistic target can be incredibly demoralising. An example of a saving money target could be that you wish to save £200 every month for a year.

Set up
Once you have your aim, then its time to start setting up your budget. To do this you need to note down all of your expenditure next to your income, from my personal experience, I would advise doing this on a monthly basis at the beginning of the month. Try to remember to include everything, which comes back to my point earlier about being thorough. Once you have noted down your expenditure and your monthly income, then you can take your expenditure away from your income, which will leave you with what I like to call flexible cash.

Cut Expenditure
Once you have your budget in place the best way to improve your level of flexible cash (and as a result save money) is of course to cut down on your expenditure. You can do this using a number of methods, but the first thing you need to do is look at the expenditure on your budget to see if there’s anything that stands out. Can you see any payments that look like they’re far too high? If so, then they are your first point of action. If not then here’s a few money saving tips for things that should be included in your budget:

  • Food shopping – When you go out for your weekly or daily food shop, before you go out make a list of what you need and try to stick to the list! By doing this you can try and cut out on the expensive impulse purchases that just bump up your bill
  • Credit Cards – If you use your credit cards regularly you can check to see if you are paying more interest than you should be on them. If you are, then why not transfer your credit card balances using a balance transfer credit card. Balance transfer credit cards normally come with a typical interest free period, normally 12 months, so by doing this, you can save yourself a lot of money in interest payments
  • Your bills – Have you checked recently to see if you can save money on your household bills? For many of us our answer is no, but it should be yes. Using price comparison websites on a regular basis you can check to see if you are paying too much money for various necessities, this could include your internet, phone and your utility bills. Using price comparison sites can save you time and money because they do the hard work so you don’t have to.
  • Car fuel – Do you spend too much on petrol for your car? If you do then you could look at alternatives to help save you money. One alternative could be biking to work, many people do it and it saves them money and helps the environment at the same time. You could also use public transport wherever possible to help save you some money.

Flexible Cash
With your level of flexible cash, whether it is large or small, it’s up to you what you do with it. I tend to split the cash up into three categories, emergency funds, savings and flexi.  You could split it up evenly and place a third in each, but depending on your circumstances you can alter this accordingly. For example if your main aim is to save, then you can place half of the amount in a cash ISA savings account, and split up the remaining half into emergency and flexi, it’s totally up to you.

Try and stick to your budget to the best of your ability. You will have times when something pops up that isn’t expected, e.g. something goes wrong with your car, and this is where your emergency fund can come into action.

Bio: This article was written by Andreas Nicolaides, a money and savings author.

Start saving money today

Saving Money

Saving Money

People get stressed at the thought of saving money.  The habit of saving money  should be inculcated right from the time we are young.  There are so many expenses which might just crop up at any time and if we do not have the requisite resources, then we are sure to get stressed.  To avoid such a situation, we need to start saving money today by ourself.  The habit of saving money gives us financial freedom and you can live comfortably and happylife.  Adhering to simple and time-tested personal financial tips can help you save considerable amount of money which can be fruitfully used for something else.

Try out free samples
Companies which launch new products offer free samples of their products.  Go in for these free samples.  Check out with these companies if they are offering something for free.  Check out the websites of these companies online and make a complete list of such companies.

Make improvements and changes in the way you spend
You can always make changes in the way you spend your money.  Bringing about simple changes in your spending habits will help you spend less.  Start paying money by cash and refrain from using the credit card.  People who use the credit card end up buying excess things.  This mans that you will not shop if you do not have the cash to pay for it.  Buy only those things which are necessities and which you can afford.

If you are totally addicted to shopping, then you are without doubt a shopaholic.  This habit can be changed and this is sure to benefit you.  Pay off the bill and totally forget about it.  Do not keep credit cards in your wallet as you would be tempted to shop and spend.  Write down things which you feel are a complete emergency and which you cannot do without.  You are supposed to use the card only for such items.

Impulsive buyers
There are many individuals who enter the shop for buying one item.  But the problem is they end up buying too many things and purchase everything they see. Impulsive buying is dangerous as it would drain your finances.  Companies lure customers by offering generous discounts and offers and we are tempted to buy them even if it does not serve our purpose.  The retailer and wholesaler stand to benefit by this and we are in no way benefitted.  Hence, get over this habit of buying on impulse.  Think smartly and shop smartly.  Make a check list of things which you need and only stick to this list.  Once you have filled the cart with the required goods, pay the money and leave the store without doing any further window shopping.  This is extremely dangerous as you will end up buying more items.  A strict buying pattern slowly becomes a routine and you are sure to save money. Your wallet too is going to feel happy about this change.

Never spend everything what you earn.  Set aside at least ten percent of your income and invest it wisely and prudently.  This money will be of great help during your retirement and for the future also. Coupons are the best way of spending wisely.  Investing in coupons is advised.