7 simple ways to help you save money effectively

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Most times the hardest part about saving money is just getting started. Many people will end up
procrastinating about savings because it’s hard to start. Here is a step by step guide on how to save money that can help you develop a realistic saving culture for your finances.

1. Record all your expenses.

For you to save money, you have to first figure out how much you spend. You can do this by keeping
track of all your expenses from just simple groceries and house hold items to other bills. Once you have the data you need, organize the numbers by category and total each amount .You can use use receipts and bank statements to help you with this and make sure your accurate.

2. Budget for the Savings.

If you know what you spend say in a week or month, you can begin to arrange your recorded expenses into a workable budget. Your budget should outline how your expenses measure up to your income in order to plan your spending and limit over spending. You should at least aim at saving 20% of your income.

3. Find ways you can cut your spending.

If your expenses are really high and you can’t save as much money as you would like, it might be time to cut on them. know your priorities and identify nonessential things that you can spend less on or even cut out such as eating out all the time. Look for ways to save on your weekly or monthly expenses like data/airtime and food.

4. Set saving goals.

One of the best ways to save is to set a saving goal. Start by thinking about what you might want to save for. Saving should be done with an intention to invest and not to spend. Sometimes we fail at saving because we are saving for the wrong reasons like saving to buy new clothes, shoes or go on a vacation but this is only extending expenditure because in the end there will be no profits.

If your goal is to invest in a business, figure out how much money you will need and how long it might take you to save it. Understand that the main reason from your saving is to invest and not to spend.

Related: Ever heard of a personal loans? Here is all you need to know about it

5. Decide on your priorities.

After your expenses and income, your goals are likely to have the biggest impact on how you allocate
your savings. Priotize your saving goals so that you have a clear idea of when to start saving for example, if you know your going to need to make a big investment in the near future you can start putting money away for now. And save money.

6. Choose the right Saving Account.

The account for short term saving goals may not be the same for the long term saving goals. You don’t have to use one account .Make sure you look carefully at all options and consider things like interest rates, fees or charges and minimum balance so that you can choose the one that will help you best save money for your goals.

7. Let your savings grow

You can keep reviewing your budget and check your progress every month. This will not only stick with your personal savings plan but it will also help you identify and fix problems real quick.

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