People with a modest income sometimes save more than others who earn considerably more. Paying down debt and building savings need not be a dream. The trick is learning to use what you have wisely. People neglect saving because they don't think they have much to put away. Putting away RM10 a month or saving your change every Friday can add up. Skipping one RM1 trip to the vending machine every week can save RM52. Doing it every day, five days a week, 52 weeks a year will yield a savings of RM260.
Even people who say they can't save money usually can save something.
Just try these tips....
1) Identify key expenses
Such as a house payment or rent, car payment, insurance, food, medical bills, etc., and pay those bills first.
2) Think about short- and long-term goals.
Ask yourself, will you need a new refrigerator this year? New tires for your car come spring? Or, do you want to plan a weekend holiday or vacation?
3) Identifying needs and goals
Usually can help people begin to separate needs from wants, which is key to successful money management. Before you buy, ask yourself: Which is more important? An extra sweater or new ties that will provide a safe ride.
4) Stop shopping
For recreation or if feeling lonely or bored. Resolve to shop only when you have a specific need.
5) Leave credit cards
Leave your credit card at home and carry a small amount of cash.People who shop with a credit card can be tempted to spend more.
6) Pay down balances
By paying as much as you can on the card with the highest interest, while also meeting minimum payment requirements on other cards to avoid extra fees.
7) Choose direct deposit.
You’ll save time and funds usually are available more quickly.
8) Make saving a habit.
Check to see if your employer offers an automatic payroll deduction to a savings account. If you don't see it, you won't be likely to spend it.
9) Set aside money for an emergency fund.
Sooner or later, everyone is likely to experience unexpected medical bills, a plumbing problem, a car repair or job loss. To meet such expenses, saving the equivalent of six month's salary is recommended. That may seem an unattainable goal. Start now to set aside funds to meet unexpected expenses, Earmarking tax refunds can jumpstart an emergency fund.
10) Make a birthday and holiday gift list and add in the extras
Such as a nephew's wedding out of state that also will involve travel expenses. Add up estimated costs, divide by 12 and budget for gift and travel expenses monthly. To reduce gift-giving expenses, take advantage of sales and shop for gifts throughout the year.
