Today I will like to share with you 3 tips for saving money.
Let me be honest with you. I am sure that you are just like me at times when it comes to your money. You work in a job, you make money and then at the end of the month you wonder where all the money went. Can you relate to this? So do I!!!
It is very important that we begin to save money because if we don’t have a plan in place for this we will tend to feel guilty after the end of each month because we don’t know where our money went or what we should have done with our money. It is also important to get this handled because sometimes we may encounter emergencies and if we do not have money during those times we could find ourselves in really serious situations e.g. our children can die because we chose to spend all our money on entertainment and we didn’t plan for sickness.
So you do know that money is important and without money we cannot do much because everything we want and need requires some form of money.
Here are 3 tips for saving money.
1. Learn to live on only 70% of your net income – I know that you are thinking that is hard but believe me it is possible for you to live on only 70% of your net income.
2. What to do with the other 30%? – Here is what you are going to do. The first 10% you are going to give it away to help people. For me I give the first 10% to a church. You may decide to give it to charity. Make sure and give it away. The 2nd 10% you should use it for savings/investing. Put it in a place where it can yield you a good return in a few years. The 3rd 10% you should use it to buy something and sell it for a profit. Get into the entrepreneur spirit and learn to feel what it is like to have a small part time business.
3. Keep track of where your money is going – Get a journal or make a simple excel spreadsheet and start writing down where the money is going. This way you will know what to do the following month to ensure that your money is being used wisely and not wastefully.
I encourage you to try this simple principle for at least 1 month and see what happens. Commit this month to write down everytime you buy something and how much you paid for it and then review this at the end of the month. This simple technique will work wonders for you.
I appreciate your feedback on this topic and a good book that is recommended by all financial experts on this topic is The Richest Man in Babylon. Talk to you soon.
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