How can I develop a saving habit?

Saving habit depends a lot on the lifestyle of an individual. Some little changes in lifestyle can help to save. Following are some of the suggestions from my side. There are many ways you can save more. The basic concept for savings are –

1.Reasons for Saving

  • For emergencies – to make sure there’s money available if something unexpected happens, like your car breaking down.
  • For shopping – this might include a holiday or buying a new car, or things such as a tablet, computer or new phone.
  • For the future – although it might seem very far away, once you stop working your income will go down and you’ll probably have to rely on money you’ve saved to keep up your standard of living.

2. How to save

  • Open up a savings account. When preserving money, you need a savings account. It’s safer than holding cash in your house and it’s easier to manage.
  • Separate your wants from your needs. It’s obvious that you can’t avoid spending money on certain things: bills, children and food is a must. Other things you can live without e.g. you don’t need to upgrade your phone every year etc.
  • Develop Will-power. You will see commercials, you will see other people with nice things, and friends will tempt you to take a night out of town. There is much power in saying the word no. Stay strong and keep reminding yourself that you’re trying to value your money and not let it go to waste.

3.Set goals

  • Set you your monthly or Yearly Goal. Take out a pen and paper and write them down How much you want to save this year.
  • Goal must be specific, realistic and simple and giving it a time frame.
  • We can set some big money goals – like saving an emergency fund, buying a home in the next five years or saving for retirement (this could be the biggest money goal of all).
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