By: Ana Margarita Olar| Foodfindsasia.com
A lot of us find it hard to save money. From the time we receive our paycheck or profit from our business, we have this mindset to spend everything because we are expecting for the next cut off.
New Year is the best way to start a new way to handle your money wisely. Here are the tips to save more money in 2016:
Keep a Spending Diary for 100 Days
The first 100 days of 2016 is crucial for you to keep more money. Sometimes, your hard earned salary does not go to big purchases. You might get surprised that small spending actually eats a huge portion of your budget. An example would be spending for a cup of coffee or buying snacks every day.
So in the first 100 days, your assignment is to keep a small notebook where you can track how you spend every single cent. At the end of the week, place a label on the side of the expenses as: need, better to have, or nice to have.
Need- are the basic legitimate things that are necessary. Examples of this are electric and water bills, food, travel allowance, and daily allowance.
Better to have– if you can ride the public train going to work but choose the luxury bus instead; it is an example of better to have expenses. Another example is choosing branded clothes when you can buy generic one.
Nice to have– a 40,000 phone, 20,000 camera, 10,000 worth of vintage bags are examples of nice to have things. If the purchase is greater than your emergency fund or savings, it is considered as nice to have. It can also be splurging money on expensive coffee when you have free coffee in your office. Going out and eating on expensive restaurants every weekend are nice to have things too.
When you do, you will be aware of the loopholes where you can cut unnecessary spending.
Automate Your Savings
If you feel like you aren’t disciplined enough to save, you should consider automation. Make an arrangement with your bank to immediately transfer say 10% of your salary to your savings. This way, you will not forget that you have to save. You will also lessen the temptation of spending before saving.
Sharpen Your Financial IQ
This year is also a good start for you to take a more serious look of your finances. Saving money is good but it is not smart in the long run. To make saving more fun, it will be better if you will also learn how to grow your money through investment. Read books or attend in financial seminars to sharpen your knowledge in growing your money.
Money resolutions are best kept when you follow these tips.