Most of the people these days fail to save their hard earned money – there are many distractions. But if you put your mind up to it, it might not seem as tough as it does now. Just focus on what is important and save your over-committed income. Your two best friends will be discipline and efficiency – take them with you on your savings tour.
The first step is to track down yourincome. If you are earning without saving anything, it means you are spending your money somewhere. So, in order to trace where that money is disappearing to, maintain and diary and write down everything you are spending on from groceries to coffees to mortgages. Don’t get too shocked by the amount you blow away without even realizing it.
The next thing you should do is creating a budget for yourself taking into account all the rents, payments and setting an amount aside for entertainment too. Setting limits to yourself will bundle up your savings. Well, you should also have an emergency fund, a fixed deposit perhaps, to add something from your salary every month. And in case you add a little extra to that Recurring or Fixed Deposit, it’s a win-win situation. You’ve learned to save!
Bell the Bull says: If you have some more cash left after the recurring deposit, you can even start investing it somewhere. But you know where you can make that investment – in your credit card account. You will be surprised to see the money you lose just by paying the interest of your credit card dues and if you have the money, why not save that too? the more the merrier, right?