7 More Effective Ways to Save Money

What are the children asking from Santa Claus this year? Here are the answers:

A job for their mom or dad. Money for the heating bill. Food or a place to live. Maybe gloves or boots.

Time is so bad that children don’t ask for things for themselves. It boils down to the fact that we really need to save for a rainy day. Here are more ways to save effectively:

1.      Habit: You must thank your parents for helping you cultivate the savings habit since young

. You were given a piggy bank and when you were older; your parent opened a savings account for you in one of the banks in town.  You have seen for yourself the money in the account has accumulated into a substantial amount because you have developed the habit to save regularly.

2.       Budget: As an adult, you are smart enough to incorporate an amount earmarked for savings in your monthly budget. You very well know that to save with what is left over for the month does not work. To budget for it is the most effective way to save. 

3.       Discipline: A budget is a wonderful tool to manage your personal finance. Are you following the budget? It takes a lot of self-restraint and personal discipline to follow your budget faithfully. The moment you go beyond the budget you are in debt.

4.       Financial goals: Your financial goals are a great incentive to save. You know what you want to do with your savings and you will determine not to touch the money. You may want to save for an essential big-ticket item, an emergency fund, a down payment for your car, or your dream house. Building wealth is another important goal. You know the starting point to build your wealth is from your savings. When you think of your money goals, you will not spend unnecessarily.  

5.       Avoid temptation: TV commercials are getting your attention. The billboard ads are seducing you to spend. Ads in the papers are irresistible. Your neighbor is driving a car which you wish were yours. Can you control your urge and avoid spending on what you want?

6.       Be fearful of debt

: Do not think that you are gainfully employed and you are qualified for a loan. You pay more when you purchase with a loan. Interest is a dangerous element that can snowball into an amount that is beyond your means. Before you know you are declared bankrupt. As a bankrupt can you stand tall among your friends and relatives?

7.      Think of financial independence: I cannot imagine a situation that I have to ask for money from my friends and relative.  Financial independence is the greatest incentive to save. You live the life you want with what you have and you are happy because you don’t have to ask for financial assistance or depend on anyone.  A happy life is about peace of mind.

It is never too early to encourage long-term savings. ~Ron Lewis

Source: 7 More Effective Ways to Save Money