The hardest thing about saving money is just getting started. This step-by-step guide for how to save money can help you develop a simple and realistic strategy, so you can save for all your short- and long-term savings goals. Saving money helps, especially for raining days.
- KEEP TRACK OF EXPENSES: The first step to start saving money is to keep track of all your expenses that means every food, airtime, clothes, shoes. Once you have your data, organize the numbers by categories, such as miscellaneous, groceries and mortgage, and total each amount.
- BUDGET FOR SAVINGS: Aim to save 10 to 15 percent of your income. Once you have an idea of what you spend in a month, you can begin to organize your recorded expenses into a workable budget. Your budget should outline how your expenses measure up to your income so you can plan your spending and limit overspending.
- DECIDE ON YOUR PRIORITIES: Learn how to prioritize your savings goals so you have a clear idea of where to start saving. After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. Be sure to remember long-term goals—it’s important that planning for retirement doesn’t take a back seat to shorter-term needs.