Image by Kristina Alexanderson
Every year we have a tendency to put “Save more money” as one of our new year’s resolutions.
But still, most of us cannot cope with that, especially with the rising cost of living.
According to Bankrate.com, 27% of Americans have no emergency savings whereas only 23% actually saves.
Although the statistics were meant for American households, it’s generally more or less the same in every other developed countries as well.
Here’s 3 techniques you should know of on how to save more money this year:
1) Record your spending
Most people don’t usually record their spending because it’s bothersome and very annoying.
Imagine the work you have to do every time you buy something!
But lately especially this year in 2014, more and more people are getting aware of the importance of tracking their spending especially in countries with low-salary like Malaysia, China and Singapore.
Today, life is easier with the rising of apps made to help you track your budgets so if there is a time to do so, there has never been a better time than now!
2) Finding loopholes
One of the best ways to save money is to think back on what do you keep spending money on and try to reduce that by thinking of alternative ways.
For example, if you’re using a car to go to work which is only 10 minutes away, why not use a bicycle instead? You could save tons of money on fuel that way and plus, you lose weight ;).
According to Career Builder, the most valued expenses are:
Internet connection: 55 percent
Driving: 40 percent
Pet: 36 percent
Smart phone: 29 percent
Cable: 24 percent
Travel: 10 percent
Going out to eat: 9 percent
There are many ways to reduce cost, you’d be surprised to find out how most of those spending are really unnecessary.
Like when you pay for TV channels, do you even watch all of them?
And when you go out for shopping next time, try to find out local discounts like Groupon which would save you lots of money!
3) Target how much do you want to save
It’s amazing how having a clear goal and affect your actions better.
Try to set a goal for how much you would like to save per month, the best would be about 10% of your total salary.
This is because doing so will prompt you to think of saving more and to reach that goal of yours, you will constantly find ways to accomplish your goal too.
Conclusion
Sure it is nice to enjoy life when you have money at hand, but what good are short-term goals compared to long-term?
Having some backup money in your bank will greatly help you when you have emergencies in the future.
Riaz Shah
