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Financial 101
Simple Ways to Save Money

Whether you picked it up from your parents or learned it on your own, saving money is a worthwhile practice that’ll greatly benefit you in the long run. From handling emergencies to a downpayment on a car, funding a vacation, or even achieving financial freedom — it’s a sure way to help you learn the value of money and the sense to spend it. Here are some of the ways you can get started.


Track Your Expenses

The best way to know how much to save is to know how much you spend. Make it a habit to document your regular expenses and itemise them categorically, this will help you determine a spending pattern and make it easier to adjust accordingly. If you’re not one to keep your receipts, try opting for a free spending tracker app to house all your expense records in your phone. Alternatively, you can create an Excel sheet and manage your expenses weekly or monthly.


Only Spend When Needed

It’s important to differentiate a necessity from an indulgence before making a purchase from time to time. For starters, here are aspects to consider when weighing-out your needs:

  • Borrow before you spend — if you have a wedding to attend with nothing to wear, consider asking a friend or a relative before ordering something brand new.
  • Lower your cellphone bill — stop paying for data you don’t use and opt for a telco plan that meets your usage requirements.
  • Try a Spending Freeze — if your morning routine includes gourmet coffee, try cutting down or preparing coffee from home before stepping out.

Set Realistic Saving Goals

Setting goals is the easy part. However, sticking to them might be a little tricky. Start by setting short term goals that will lead to your long-term goals. For instance, if your long-term goal is to travel the world for 6 months — your short term could be cutting down expenses you don’t necessarily need. Whether it’s eating outside or spending on your daily cup of coffee, try packing your food, snacks, and drinks from home instead. The goal you set for your savings should motivate you to commit to it.


Automate Your Savings

Another tip to easy saving is to set up an automated transfer on the date you get your allowance or salary. To do this, you could opt to set up a separate savings account from your payroll account. Setting an automated transfer will then deduct a preset amount of your choice from your payroll account, and into your savings account (ideally 20% of the total amount of your allowance or salary). Here’s a quick read about the 50-30-20 savings rule by the balance. By doing so, you’ll get used to what you have left to spend, while keeping the saved amount untouched.


Keep Your Extra Cash

Whether your extra cash is earned from a freelance gig or taking on a part-time job — setting aside an amount to save in your savings account is a good habit to adopt. Treat yourself from time to time, but don’t forget, a little goes a long way to achieving your savings goals!

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