How to save money

Learning how to save money is an essential life skill. It’s important that you do some training in this topic because whole industries are built around taking money away from gullible members of the public by commercially astute service providers and retailers. The high street can be a financially dangerous place for the unsuspecting individual. Bankers, mortgage providers, mobile phone plan sellers, and internet service providers don’t like it when you know how to save money by shopping around. Obviously, for those whose mobile phone costs are a good slice of their salary, it pays to call during off-peak time.

Mortgage rates have been at their lowest levels now for the last 3 years. When you are looking for ways of how to save money then your mortgage is the first place to scrutinise. Get quotes from other lenders to allow you to calculate your monthly savings by switching from your current mortgage provider to another one. Remember, when investigating how to save money, that loyalty to your bank or mortgage provider only benefits those companies, not you. Most families have home insurance and car insurance, others may also have life insurance, health insurance, and travel insurance. It usually offers opportunities in how to save money through bundling all of your insurance needs with just the one company.

In studying how to save money, think about your savings first during the creation of your budget. Your savings will accumulate monthly if your first action, on the first day of the month, is to make the deposit into the savings account. It’s the first rule for how to save money. You need to decide the amount that will be deposited monthly. It could be 10% of your salary or it could be 20% of your salary. You need to choose which.

The second rule in appreciating how to save money for yourself is to get rid of your most expensive debts first. These will be your credit card debts at 17% APR to 35% APR. Regardless of whether you are a plumber or a primary school teacher, these two rules will help you in your search as to how to save money, if you stick with it. Another source of small savings is the mango chutney jar technique. Before retiring to bed for the evening, empty your contents of pockets, purse and wallet into an empty mango chutney jar on the bedside table. You can then visit the bank at the end of each month and proudly present to the bank counter staff the contents of your mango chutney jar as a deposit into your savings account.
During your investigations into how to save money, don’t forget that it’s not an exact science and your approach will have to change, just as changes take place in your own life. Your budget or financial plan will need a few iterations till it suits your requirements. Don’t be despondent if it doesn’t work straight away as it may take time whilst training how to save money.

1 comment:

  1. With what the economy has turned into these tips are really timely. However, I think what anyone truly need to save money is discipline. Without it no matter the strategies you put in place you will find yourself running into debts again.

    Thanks for posting this.

    ReplyDelete

Comments are welcome and detailed ones are published.