8 Money-Saving Tips To Pursue Your Financial Goals
Sometimes the most difficult thing about saving money is just getting started. After getting started, it becomes easier than ever think off.
It can be challenging to find out the easiest ways to save money and how to make use of it to pursue your financial goals.
Here is the step-by-step guide money-saving tips that can help you develop a genuine savings plan.
8 Money-Saving Tips To Pursue Your Financial Goals
Money-Saving Tips 1-Record All Your Expenditures
This is where many people got it wrong, they spend money without any proper record and at the end of the day, and money being spent will not be accountable.
So the first step in saving money is to know how much you’re spending per day or per week. For one month, you need to keep all the record of everything you spend.
It means that every food, every newspaper, drink, the snack you purchase for the whole month. As soon as you have these data, make sure you organize them by categorically.
For example, bill, gas, groceries, mortgage, shopping, transportation etc, write down the total amount for each.
Money-Saving Tips 2. Make a budget to plan your spending
It is very important to make a budget in other to plan your spending. This will help you to cut excessive spending.
After you have a good idea of the amount you spend in a month, you can build a budget to design your spending, reducing over-spending and ensuring that you put money away in an emergency savings fund.
Don’t forget to add all expenses that happen frequently, but not every month such as vehicle maintenance. Learn more about the budget.
Money-Saving Tips 3. Plan to save money
Without plan no one can reach his/her goal setting no matter how much struggling, a plan pave way to achieve a certain goal.
To save money, you need to take your monthly expenses and earnings into consideration.
Make a savings category within your budget and try to make it at least 15-25% of your net income.
If you can’t save that much because of your expenses, it is time to cut.
Find out most of the non-essentials things that take money from you, remove those that can be removed and reduce the amount you spend on those that are not important or spend less.
For example, dining out, buying gifts for friends, entertainment etc.
This will help you when it comes to money-saving on essential things such as your home and vehicle. Read more on the money-saving tip.
Money Saving Tips 4 – Set savings goals
Have you set your goal?
If no, start today, people without any goal setting is just like those who have no vision.
Setting achieving savings goals makes it much easier and stress-free to get started.
Start by deciding how long it will take to reach each goal. There are some short-term goals which can usually take 1-3 years to achieve depending on how far you want to go.
Short Time Saving Goal
Starting an emergency fund to cover 8 months to a year of living expenses (in case of job loss or other emergencies that may arises any time)
- Saving to buy a new vehicle
- Saving money for a vacation
- Money saving to pay taxes (if the tax are not deducted by your employer)
Long-Time Saving Goal
- Long-term savings goals are often taking many years or even decades and can consist of:
- Putting money away for child’s education
- Saving money for retirement
- Saving for a down payment to remodel your current home.
Click here to get savings goal calculator to see how long it will take you to reach your saving goal.
Money Saving Tips 5 – Decide on your priorities
When it comes to money saving, different people have different priorities, so it makes sense to decide which savings goals are most significant to you.
You need to decide on how long you can wait to save up for a goal and how much you want to put for saving every month to help you reach your desire goal.
To do this for all your goals, arrange them by priority and set money separately base on your monthly budget.
Note that setting priorities means making choices.
If you want to focus on saving money for retirement, several other goals might have to be affected while you make sure you’re steady on your top targets.
Money-Saving Tips 6 –Savings and investment strategies for different goals
If the purpose of saving is for short-term goals, consider using FDIC-insured deposits accounts:
A high-yield savings account: it is an account that often has a higher interest rate than a standard savings account.
Bank money savings account: It has a variable interest rate that could increase as your savings grow
A certificate of deposit: This is a saving account which locks in your money at a definite interest rate for a specific period of time.
For long-term goals
Consider FDIC-insured IRAs. It is built for purposes such as retirement savings.
If you’re not really sure of how much money you should set aside for retirement, check out the retirement calculator.
Securities such as stocks and mutual funds. These investment products are available through investment accounts with a broker-dealer.
Gold and precious metals investment. This is one of best ways to start investment, most of investors are now moving toward the direction of precious metals investment.
You can learn more about gold and precious metal investment .
Regal assets is one of the best Gold and precious metals investment companies.
Click here to check out their website or download Gold IRA investment kit .
Remember that stocks and mutual funds, are not insured by the FDIC, are not deposits or other obligations of a bank and are not guaranteed by a bank.
They are subject to investment risks including the possible loss of principal invested.
Money Saving Tips 7 — Save more with automatic transfers
One of the easiest ways to save more money is to use automatic transfers to your savings account, this can make saving money much easier.
It is possible to avoid spending the money you wanted to use for savings by sending money out of your checking account.
You have many options for setting up money transfers. You choose how frequently you want to transfer money and which accounts you want to use for the transfers.
You can split your direct deposit between your saving account and checking account to contribute to your savings with each pay check.
Thinking of saving as a regular expense is a better way to keep on target with your savings goals and objectives.
Money Saving Tips 8 — Let your savings grow
Always check your progress monthly.
This will help you to stick to your personal savings plan and also helps you identify and fix any problems fast.
With these money-saving tips, you will be amazed if you pay more attention to your saving plan in the future and it may even inspire you to save more and hit your financial goals faster than you even imagine.
If you have any questions on tips for saving money, kindly let me know through your comment.