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9 Essential Steps for Beginners to Start Saving Money

Most of the time, beginning is the hardest step. It’s when you are not sure, a little afraid and don’t know how life will go on if you start saving. Actually the goal of saving is to make a better life so put away your fears and be certain that your future is created by what you do today not tomorrow. To start these simple saving steps your amount of salary is not important. The following steps can be done by anyone in any financial situation.

 

1.Pay your loans

Before starting to save, it is better to get rid of your past borrowed money. Try to pay back your loans and also pay off your credit card. When your income becomes free you can start the saving process.

 

2.Make a list of your expenses

Once you find out where and what you spend money on you will budget your income much more easily. Put every single item in your list such as groceries, take out coffees, meals you eat at work etc. After that analyze your list. Surely you will find some unnecessary or less needed items which you can cut out  or replace to a cheaper one. For example you can make your meals at home or you may have  unused subscriptions so cut it off. if you use cable tv, stop it and use streaming instead since the prices are much lower.

 

3.Control your shopping

credit cards, online shopping and ATMs have made it easy to buy. Try to control your interests and impulsion to buy things you really don’t need. Also try to avoid shopping’s sales because they are so attractive and you will end up with a product that you didn’t need in the first place at a better price. Actually only when you buy your essential things in sales you are a winner otherwise you will be the loser.

 

4.Start Do-It-Yourself projects

Instead of buying expensive goods try DIY ones. They are cheaper like IKEA’s. Also you can make your entire stuff  all by yourself. Search on Google or YouTube to find lots of new simple ideas. It will occupy your free time too and could be a healthy creative hobby.

 

5.Bill smoothing

It is a payment system provided by utility providers such as gas, electricity and water for you to pay your bills monthly or in particular periods. Then you are not forced to pay the whole bill at once.

 

6.Set a saving goal

saving is not enough, setting a goal is the important part. With a goal in mind, you will get encouraged to continue whenever things don’t go right. Here is a good practice for setting a saving goal, start with simple and more achievable goals, picture your goals  in front of your eyes so once you achieve it you will get more enthusiastic and more confident in your saving plan. You can start short term goals and long term goals at once. Consider that it is necessary to have both kinds of goals for your future.

 

7.Start automatic saving

It is  so easy. Every month your bank transfers a determined amount of your salary to your savings account. It will fasten your saving plan since you never count on that part of your income and you will find a routine without it. It is recommended to save at least 10% of your salary each month, however it can be different person to person.

 

8.Put away after pay day

It is more likely not to save money after you hold your salary and wait for the end of the month to see how much you can save, the money is gone by then.

 

9.Watch your saving grow

It is better to review your expenses and budget beside your savings continuously. After a while you will catch  your saving mistakes, your extra expenses and you may find out better ways to save money.

 

These are the main steps which you should follow but the most important thing in saving money is to know yourself well. If you know your interests, your weaknesses, you hobbies and your needs you can plan your financial future much better. Because we spend money on every aspect of life. The wiser we get, the better we will act. Try to convert your money habits into healthy money habits. When your future needs become important enough you can be sure you are saving wisely.

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