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How to Save Money Effectively This Year

For some people, one of the hardest parts about learning how to save is changing their relationship with money. Saving money is easier said than done. It is also true that money management isn’t just all about knowing the math or learning the processes of computing assets and liabilities. Instead, it is mostly about knowing yourself. One must understand that in order to save money effectively you must first identify your own spending habits and attitudes towards money. This is done to help build self-discipline and a strong commitment to whatever goal you may have.BlackShirt_Pig_blog

In planning goals, one must establish short-term saving plans. Although saving for retirement may be the ultimate goal for the majority, it can become tiring and is not motivational. As an alternative, break long-term goals into chucks and make them as your starting point. Then, gradually increase the difficulty or level as time passes by. When we talk about effective money saving goals, you must always make it simple, specific and particular. You should never pursue vague and general plans. Think that the money you save is for lots of specific little things throughout the course of your lifetime and not only at the end. The money you’ll save is for all the possible things you want to do today.


Every time your paycheck comes in, don’t pay yourself first. Instead, settle all your obligations including your rent/mortgage, utility bills and other monthly payments. The money left will only indicate how huge or how small your expenses are. What’s left will be divided in half for your savings and the other is for your personal expenditures. This way, you may effectively reduce your spending so there’s as much as possible left to save. This step may be difficult and challenging but rewarding at the end!


Another way to effectively lower your monthly expenses is to determine what your needs and wants are. Many people mistake a want for a need and the consequences are often obviously negative. To differentiate   between wants and needs clearly you should ask yourself what are the basic things you need in order to have a comfortable living. For example, food is necessary for people to live and have a healthy life. But do you need to eat out constantly in an expensive restaurant? Of course not! Once you have determined your needs, set aside all your wants to effectively cut down your spending. However, you must do it gradually for your system to adapt to the change you are implementing. Just always remember that big things start from small beginnings.


Saving money is a critical component in every person’s life, especially you! Try not to think of it as something that’s impossible or difficult to do. Instead, think of it as a part of your daily living. You should cultivate your healthy money saving habit to enable you to live a healthier and happier lifestyle.
Are you good at saving money? What are your effective ways?



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