On The Money

Learn To Save Money With These Practical Methods

Saving MoneySpending your money wisely is the key to saving. How do you spend your money? Your money today will have a smaller value in the future if you don’t spend it well, and that’s why you need to start investing in your future.

Also, if you have your own family, get everyone involved with keeping the budget. Sit and talk about your plans on how you should spend money wisely — and stick to it.

Here are some practical methods you can learn to save your money:

  • Keep 5-10% of cash from your total income

This may vary depending on your circumstances, but 5-10% is considered appropriate for average people. If you are keeping more than 10% of your total income, then you should think again and assess yourself if you really need to keep such amount of money.

  • Put your money in savings account

Look for a reliable bank that offers the best interest rates, security, accessibility, customer hotline and others. Regardless of the amount, the longer you save your cash, the higher the rate you will get in the future and this is why you should start small because small is powerful. Small acts can make a difference.

  • Spend to invest

Building wealth is not just about locking your money in bank; it also means you should use your money for future investments. No matter how small, learn to spend your money for the purpose of investing. Learn about the 10-20-70 principles to help you achieve the right saving habit.

Having a big cash deposit is good but many successful businessmen tend to spread out their assets by investing in stocks, bonds, mutual funds, real estates, and many more. Saving money doesn’t mean you have to live a frugal life and avoiding the fun, it actually means spending your money wisely and practically.