Ways of saving money
Savings are always useful at some or other point of life. Life is never similar; it can change at any point of time. If you are financially stable at this point then it does not mean it will be same forever. Financial imbalance can be possible at any point in your life and when that time comes. You should be prepared for it. If you have planned to save money when your time was good, it will be very much helpful when bad time hits your door. Saving money will help during any medical emergency or when you have to pay higher education fees of your kids or when your kids are getting married. One of the reasons of saving money can also be for retirement. However whatever is the reason behind saving money, it is a good habit which should be cultivated if you are not having it right now. But of course saving money is not an easy thing to do and the biggest problem in saving money is to decide where to start from. To get rid of all this problems here are some of the tips to save money which will definitely be helpful in future.
Tips to save money
You must have some goals to save money. It will drive you or motivate you to compulsorily be strict on your plan of saving money. First of all start with short term goals. Once you feel that all short term goals are accomplished plan for long term goals and stick to them. These goals can be like buying a new car or buying a new home or any such thing. If you are a travel person you can even plan your next trip and start saving money for that.
Just deciding the goal will not help you fully on saving money. You should create a plan on how you are going to accomplish that goal. You need to make a plan as to how much you are going to save monthly. When it’s your initial sage of saving money, you can try saving money on weekly basis. When you start cultivating this habit, you will eventually realize that it’s not that tough to save money and fruits are also good. You can also try cut down on some extra luxuries. It can also be a part of your plan.
Determine your priorities
When you are saving money it will definitely include cutting down on your expenses. When you are cutting on extra expenses, it will mean that you need to priorities your needs. Say for example you are doing shopping worth 5000 every month. See the things and choose which are those which can be cut and they are not needed every month. Doing this will help you to save more money and achieve your targets more quickly and easily. This will make your process of saving money more simplified.
Generally the biggest financial complications which arise are due to not doing the simple organized things. Financial issues arise due to unorganized money and unplanned usage of money. When you don’t manage your money then it becomes difficult for you to manage your expenses and your emergency needs have financed. Thus it is advisable to manage your money in a way that you make less expense and able to save more. If you don’t want to get into trouble relating to money then it is advisable to manage your money and here are some of the tips to manage your money in proper manner.
For managing your money in a proper and appropriate manner, you need to have a fait idea relating to where you spend. Start noting each and every expense of yours for a month. Doing this, will give you an idea as to how much you spend in a month. By knowing your monthly expenditure you would be able to manage your money and make some savings out of it. Once you start noting down your expenses, you will also be able to know your extra expenses and you will feel to cut it down. After getting the [roper idea regarding managing your money, you must start making a budget and work according to it. Yes of course, budget sounds complicated but trusts me, by making a budget you would be able to save a lot then you don now. While starting to manage your money, you might find it tough but it will become easier the more you do it.
Combine your expenses if you are married
When you are married and your partner is working then it should never be his money or her money or his bills or her bills, it should always be combined. All the income and expenditures of both of you should be calculated in a combined manner. This will give you ease in managing your money. Thus always deposit money of both of you in same bank account. Agree on a common budget and follow the same, this will not only allow you to manage your money but also help to avoid money fights between the couple.
If you find any trouble in managing your money or staying organized with your money when it comes to paying off your bills then you should follow the method of bills calendar. Make a calendar which shows you which bill is due. Refer this bills calendar once or twice a week and then see which bills are due for this week and pay it. By doing this, you will be able to be particular in paying off all the bills and won’t have any outstanding bills or any fine on late payment of bills. This is really a very effective tip for managing your money. By doing this you can also manage to build up a emergency fund after all the bills are paid.
Most of us have do banking and have basic checking or savings account. They are the most standard accounts. But apart from them there is still much kind of accounts which you might be unaware of. Banks and credit union offers variety of other accounts. Check out for your options and see which one fits you the best. Check out the types of accounts, match up with your needs and finalize the one from which you get benefited the most.
Almost every bank and financial institution provides a kind of interest bearing account which allows you to write checks which is known as money market account. Money market accounts generally bears higher rate of interest as compared to a checking account or bearing account. Money market accounts are such which needs a superior minimum balance to initiate earning interest. But being high balance, you also high interest. It’s right that you get high amount of interest but on other hand if we talk about withdrawal of funds from money market account then it would be not as easy as of checking or savings account. You are only allowed six times transfers from your money market account and among them only three times you are allowed to do transfer by a check. Most of the banks and financial institution charges fees on money market accounts.
Certificate of deposit is also known as time deposit or CD. They are also included in the types of accounts which are usually offered. Time deposits are for a particular period of time and it is fixed. The rate of interest given on time deposits is also fixed depending upon the time period. Time deposit allows you to have an option of choosing the time period for which you want to keep your money into deposit. This time period can vary from certain days to years. Once you decide the time period your money will be into certificate of deposit for that time period and you cannot withdraw it. There are some banks who allow withdrawing the interest but you cannot take your principal until the date of maturity. As you are allowing leaving your funds for a definite period of time, banks pay higher amount of interest as compared to savings and checking account. Banks also allow withdrawing your money before maturity but for this they charge penalty from you.
Basic or no frill banking account
There are many banks or institutions which offers account for low price and certain limited range of services. Basic accounts are one which offers you with a comfortable way of paying off the bills and cash checks. They are like usual checking account with certain limits on the number of deposits to make and number of withdrawals you can make per month. Generally basic accounts do not possess any interest. You can compare the basic account and checking account and which one offer you good deal with low balance opening and o need of keeping minimum balance in the account.
As we know that clothes of same size does not fit all. Similarly wealth habits of one person don’t suit all. It varies according to the income, expenditure, size of the family, gender and many more. Now if we come to wealth habits and investment of women, it’s generally different from that of men. Knowing the nature of women, they do save but they do expenses a lot especially shopping. So it’s very essential for women to develop their wealth management habits by many ways like saving, cost cutting, managing income, and reducing expense. Here are some of the easy ways for women for making strategic wealth management.
Get started with the wealth management process
It may be because of the traditions of the society or lack of confidence in women in matter of investment. Many of the women leave the matter of investment on men. But this is not to be continued now. Now women need to actively take part in investment process and take their financial decisions themselves. Managing your own money yourself is an important task and a key factor to succeed in your life and make your end life beautiful.
Always consider your retirement plan at every age
Retirement is such a confirm time in your life which is definitely going to come and it will hinder you if you are out of plan and savings during your young age. The earlier you start to save the safe and secure will be your retirement. It’s not more, just keep 10 % of your savings aside and it would be a huge amount accumulated at the time of your retirement. Thus every women should put up a certain amount to be self dependent in future.
Consider savings as key financial strategy
Divide your savings into pieces, just as you do your investment portfolio by developing pension fund, retirement account, saving account and also social security. Women can’t work continuously like men as they have to take breaks from their work for family reasons and many such. Thus their saving capacity and investments are less as compared to that of men. For proper development, focus on individual savings account.
Overestimate your future financial needs
People cannot estimate their life. It can be short after retirement or it can be long, even more than your expectations. If you save thinking that you are not going to live more than particular ages then don’t do such a mistake. Women expected to live 60 years live up to 80 years long. Saving according to the current market conditions and prices is also wrong. You must consider the factor of inflation and price rise. The amount appropriate to fulfill your needs right now might not be sufficient to pass your livelihood in future. At an older age the health care expenses and medication will also cost you more. Thus if you are not getting a right figure to fulfill future financial needs then you can overestimate it but never underestimate it.