KARACHI: Do you always run short of cash at the end of the month and can’t save if your life depended on it? Well guess what? Your life does depend on it, and we have you covered.
It is not as hard as it looks. Here are a few tips on how to save money:
1. Record your expenditures
The deficit you face at the end of every month might be because your expenses are greater than your income. The very first thing you should do to start saving some bucks is to record your expenses. Record every single payable that you have to pay every month. We mean, diary entries, receipts and all. You can look at the total amount and see where you can cut it to reduce your expenditures.
2. Download a budget app on your phone
There are plenty of budgeting apps available on android or IOS. You can download one and keep recording how much you are spending everyday. This will make you keep a check on your spending and let you know when to stop when you are being a spendthrift.
3. Decide what you want to save for:
Without having a goal in you mind, you can’t make a plan and struggle for it. Therefore, before you start saving your bucks in bulk, decide what you are aiming at. Ask yourself, what are you saving for? Keep something in mind like a new car, a better place to live in, or even a new cellphone.
4. Reduce your spending as much as you can:
Every time you spend your hard-earned money on something, stop and ask yourself if you actually need it or do you just want it. An expensive cup of coffee in the morning, lavish dinner with people you hardly know, and a ridiculously expensive dress might all seem very attractive and entice you to spend your money on, but you have to take some measures for saving money. Do away with extravagance, save money for a special occasion and for when you actually have enough to spend.
5. Open a savings account or invest:
Once you have an impressive amount of money saved in your bank account, think of converting your current account into savings account. For this, you will have to do your research to get to know which account service will give you more interest (read: profit) on your savings. You can check out other options like saving certificates. Investment in shares or stocks is also an option given that you are ready to take some amount of risk.
6. Have a separate account for the savings:
If you always end up wasting your income and it gets difficult to control yourself when it comes to spending, just open a separate account for your savings. And for your daily expenses, you can have some running cash on your hand; every single buck except that goes to your saving account. Now comes the tricky part: block the ATM card for this saving account and just hide the cashbook (or just burn it once and for all) so that when it gets too tempting you don’t have any chance or way to withdraw any amount from this account.
7. Be patient and watch your savings grow bigger:
Patience is the virtue when it comes to saving money. Seeing people spending money left right and centre might frustrate you and make you waste all your savings but be patient and enjoy the fruit of your labour later.