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How To Save Money Effectively
Most people these days in the current climate are ending up living on pay day after pay day. Some people even resort to drastic measure such as payday loans which can create more problems than they solve. A loan like this will end up costing you a lot more in the long run with their extortionate interest rates and unreachable deadlines. You could find yourself in a vicious circle which is very hard to get out of.
The ability to save money does not have to depend on the size of the pay check. Many people who have a lot of money just end up drifting through day after day not having any financial goals or limits whatsoever, however on the other hand the people with the lower income have to manage their finances to keep on top of payments etc. In essence the person with the lower income could in fact be wiser about money than the wealthier person.
You must work on this mindset of paying yourself first, every pound you earn belongs to you so don’t go out and spend it all and have nothing left to treat yourself. Save some behind specifically for you and set a savings goal then open an account and call it savings so that you have a specific account to dedicate to on a monthly basis. If you keep doing this as the days and weeks go by then you will rack up a healthy some of money.
What happens if you are saving a specific amount each month and then you discover you are falling short on other expenses, the important part of this process is that you have effectively saved what is yours. When you realise you have to pay for something else like a phone bill or an unexpected expense then don’t deprive yourself by using your savings, make sure that you take a step back and look at how you can shift things around so you can afford it. These can be things like spending too much on lunch. If this is the case then cook a meal the night before and take some of that in for your lunch the next day to save money.
Maybe use something like an envelope system to help you keep on track of where you are spending money. This will ultimately allow you to save money more effectively after you have paid yourself create separate envelopes for your other expenses and this will itself determine how much you have to spend for food, bills etc.
If you want to go one step further, why not challenge yourself to a $1 a day budget for a week and see how you cope and much money you save. It would be unrealistic to be able to continue this unless you are exceptionally dedicated. However, this simple exercise can show you where you are wasting your money, where you can cut back and how much you can actually save if you are sensible about your spending. This is particularly useless is you are saving for something specific such as a holiday.
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Aidan writes for Instant PPI Claims and particularly enjoys writing about all things money and finance. He has been in the PPI industry for nearly 2 years and has learnt many interesting things about the ways in which people spend their money in that time.
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