TIPS ON HOW TO SAVE FROM YOUR SALARY
“It is not your salary that makes you rich, it is your spending habits” – Charles A. Jaffe
In tough economic times such as ours, it’s often difficult to put away savings from your salary for when you’ll need it.
So many of us find ourselves living paycheck to paycheck, struggling to pay rising living expenses. Because emergencies like health problems and job loss can happen to anyone, many advise that a minimum savings goal should be roughly three-to-six months of living expenses.
Here are a few tips on how you can achieve this.
1. Track your expenses. Save receipts for all purchases you make in a month. Gather your monthly bills. Sort them into two main categories: fixed and flexible. Break each of these down further into two subsections: needs and wants.
2. Create your budget. Start with your typical net monthly income, which is your paycheck after taxes. First subtract your fixed expenses. Then, determine what 10 percent of your net income is. This should be your minimum goal to save each month.
3. Avoid making impulsive purchase decisions. Always “sleep on” larger purchases that don’t need an immediate decision.If you aren’t mindful of your spending, a trip to the supermarket or a few clicks on e-commerce websites can blow your entire budget.
4.Be smarter about food. While food is a necessity, it’s also a problem area for over-spenders. Although cheap food is often considered unhealthy, there are plenty of ways to pay less without sacrificing nutrition.Always remember that there’s rice at home!
We hope you find these saving tips helpful! Let us know in the comment section.
