Economy

5 steps to saving money for a better future

5 steps to saving money for a better future

Have you been trying to save money unsuccessfully? Read on to see 5 steps to saving money.
The following are 5 steps to saving money.
Write a list of your income and expenditure
Writing your expenditure down helps you do a thorough evaluation of your expenses. An actual list is more realistic and puts you into perspective when it comes to saving.
Try to see what expenses you can do without
A lot of time, we overspend on things that we don't need and end up straining financially. If you're spending too much time at the spa, yet you can't afford it, cut it out. If you've been paying for gym membership, try walking or running in your neighborhood, and the results will be the same if not better.
Make a budget
Once you've identified what you need and what you don't, come up with a budget to guide you. Ensure that 10 to 15% of your income goes to savings. If that's not possible, go back to number 2, until you get your figures right.
Make a conscious effort to save
You will not save any money if you're not committed to it. The best thing to do is to identify something that you'd like to buy at the end of the month or after a few years like a house or car to help you stay focused.
Save using the right tools
Keeping the money in your house might not be the best option. Open a saving account where you can direct your savings.
The 5 steps to saving money above will help you keep some money aside for a rainy day.

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