How to save money - fast!

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Saving extra cash monthly is probably one of the hardest things to do, but it's the number one rule you must obey in order to be able to invest in assets and be able to build passive that will generate even more money.

We have compiled some quick tips in our February issue of WealthWise magazine to help you finally decide to save and open a savings account as a first step to your financial freedom.

 

While just opening a savings account won't make you wealthy now, the simple decision of changing your spending habits to accommodate the savings will put you on your wealth map in the long run. To stay on track follow this simple rules:

  • Always make sure that all your monthly expenses are kept much lower than your actual monthly income.  By saying expenses I mean everything from rental, house bond, cars bond, food, entertainment (going out), TV bills etc
  • Budget, budget, budget!  Yes, it's necessary to know at all times where your money is heading to...I can personally say it made a huge difference in my spending habits - just make sure you stick to your budget!
  • Trim down your expenses. If your expenses are overcoming your income, it's time to rethink your spending habits, no matter how hard it is or how much you love going out every other day...That doesn't mean radically downsizing your lifestyle, small changes such as giving up on take-aways over weekends or cutting down on cigarettes and coffee do help.
  • Don't go into debt! If you have already lots of debt, devise a plan to pay it first and don't accumulate more debt! Always pay your debt in the specified time to avoid paying extra on interests!
  • Stick to only one or two credit cards - cut or get rid of the rest!!!  Choose between having very expensive possessions, thus having to pay continuously for it for the rest of the year  and having less expensive possessions and extra cash for other things, including savings or investments  - does it worth it the huge expense then to put your financials in big trouble?
  • Buy mostly on cash and if you can afford it. Using debit and credit cards makes it easier to swipe it off and overlook the purchasing amounts...until we realise we haven't got enough money to spend on the card.  Budget a certain amount of money for on-the-go expenses and carry and pay just cash. This way you will actually see and feel the money you have and think twice about your purchases.  Your shopping choices would really reflect your preferences - no more shopping sprees and after regrets!

If you want to make a huge impact on your finances, enjoy the extra cash and be able to save, you have to change the way you spend your money.  This is absolutely crucial in securing a better future and retirement for you and your family, although most of young people don't realize now the impact of their financial habits in 20,30,50 years time...

More about this later though!

Visit www.wealthwisemag.com for more wealth advice!

Until next time,

Denisa

 

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