Previous Part – How to save and manage your money – Part 1
All of us are struggling with how to save, make and protect money. Handling your finance is one of the critical life skills that you need to improve. Of course, we might have only the paycheck at the end of the month. But still, if we can manage that to earn more money by protecting it. Indeed, that would be an excellent idea!
People have their priorities, but how we can prioritize them wisely is the question that all of us have. Get ready, guys! We are here to help you to do that.
How to save your money
For most of us, it is challenging to save money as we have more expenses to settle or we might want to buy unnecessary things. So firstly saving money should start with great discipline. Great discipline? Yes, you need to adhere to your allocated budget before spending.
Let’s create your budget sheet!
However, before doing that, you can create a personal income statement to know your income sources, and further, you can identify where your money goes through identifying expenses. You can create a detailed budget plan and set your limits on your payments. You know your costs well other than anyone. Here it would be best if you prioritized those to create your budget plan. You can follow following three steps to set your budget,
- Treat yourself first
- Set your limits
- Benchmark your budget with others who do have a similar profile to yours
There are more than 100 ways to save your money, but we need to know each way correctly and in detail to practice in our lives. Stay tuned with us to learn best practices in fact to save your money. You might be wondering to hear that we can save money from home too. Here we will briefly explain few ways you can save your money by putting less effort. Let us have a look at few ways!
How to save your money from salary
We spend our money on different unwanted things and activities unconsciously.
Let us have a look at few real-life examples.
Do you ever imagine that it is possible to save your money from food?
Guys, yes, it is possible. Make your food by yourself, and that will help you to save more money. As an example, you are still buying coffee from Starbucks, why do you not think of buying a coffee machine to make your coffee by yourself?
You can even save your money when you are shopping too. First of all, you need to create a shopping list, and secondly, you need to stick to that strictly. Further, go for discounts, and you can bargain to reduce the prices as well.
On the other hand, you can save money from your debt. Stay alert on interest rates. This will lead you to obtain more exciting reductions on your debts. Most of the time, people do not bother to contact their banks, loan officers. But if you can talk with your loan officer at least once a year, you can get to know about how you can reduce your debt.
How to protect your money
Imagine how much happier you can be if you are financially independent. This section of our article series would enhance your knowledge regarding protecting money, why we need that, and how we will do that. Here are few tips for your reference,
- Did you know that having a more excellent insurance coverage ratio would help you protect your money and loved ones in the future?
- Knowing your retirement benefit and the educational expenses that you need to incur for your children in the future would save you from any future burdens, and you would be able to protect your money.
- An organized filing system and proper tracking systems towards your bills/payments and selecting the right bank would ensure your ability to protect your money.
Four things that wealthy people do to protect their money
You might wonder how rich people have more money and what qualities they have to stay wealthy. Here we have listed few things that we recognized.
- Wealthy persons protect their money by being more price-conscious. Look at Jeff Bezos and his car. He has a new version of the Honda Accord, produced in 1997, but more than $200 billion net worth.
- They also pay less tax for their income. But how do they pay less tax? They spend much time searching for tax shelters to protect their capital instead of paying taxes.
- Further, wealthy people are not too emotionally attached to money, and they will not be happy if everything goes well and will not be sad if everything goes wrong. So they have a kind of neutral feeling towards that.
- Would you believe that they do not care about how others care and how others think about them? It is exciting to know that since they want to keep their profiles low.
How to make more money?
Here we need to select investment options with low-cost fees. Not only that, we can invest in different kinds of investment portfolios without sticking to a few. Stocks, mutual funds, real estate, bonds, and commodities are few investment examples. Just imagine if you have $400,000. You can invest it in four different investment options equally. If you lost income from one, you would be able to cover that gap from the other investment option. You need to make your investment decision wisely.
Life would be so much easier if you had the right plan to manage your money. Unfortunately, most of the time, people fail to manage money wisely, but they work hard throughout their lifetime. Ultimately, excellent money discipline would lead you to the right path. Our upcoming article series would assist you in upgrading your knowledge on how to save, protect and make money.