How to Save Money the Easy Way

I have been experimenting with some simple ways of saving money and they have made a considerable difference in my accumulated savings. Savings are very important because they take care of your sudden expenses, such as a medical emergency or replacement of a necessary household appliance like your refrigerator.

I know many people who have even managed to live quite comfortably even after being laid off because of their healthy saving habits. I will share with you some of my saving strategies that have worked quite well for me and may be useful for you too.

To begin with, you should make a savings account and start putting a part of your income into the account. I suggest that you put at least 10-15% of your income into that account every month. In addition to this, you should put a part of your money in an emergency fund also and another part in a retirement account or fund. You can use the remaining amount to pay your bills, living costs and other expenses.

But if you have huge debts, you should give greater priority to debt reduction. Pay more than the minimum amount on credit bills and keep up to date with payments towards your mortgage and auto loans. Only after paying towards your debts, should you put a part of your money into the savings account.

In my experience, the most difficult part is to ensure that you maintain the savings discipline. In order to ensure that you do not end up spending your whole salary, you can opt for automatic transfer of money from your checking account into the savings account. If you get cash, then put some cash aside in a separate envelope.

If your salary is directly deposited in your bank account, then you should keep checking if the deposit has been cleared. As soon as the deposit gets cleared, you should get ten percent of the amount transferred to savings account.

The point is to immediately put some money into your savings account. For example, if you are depositing money in the ATM, then you should opt for making another transaction and transfer ten percent of the money from your checking account to the savings account. If it is PayPal, you can immediately transfer ten percent of the money into the savings account and the rest into other accounts.

Once you build the habit of saving money, things will be easier for you. You will get used to using the amount you have after you have made your savings, and will have the protection of your savings account also.

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