Systematic Way To Save More Money!

Everybody is stressing the importance of saving money. All of them will tell you the benefits of saving money and you too know very sure why savings are very important. Have you ever thought of how to save more money? Is there a way to help you save as much as possible? Do you find that it is very difficult to save money especially when you don't earn thousands of dollars.

Well, I am here to share with you on how to save money effectively. This method is have been around for many many years but no one have stressed the importance of it. However, the wealthy have been following this method and just look at them; they are getting richer! I believe if we could adopt the wealthy habits, we will also be wealthy in no time.

Firstly, we must aware of any transactions that we make. We must monitor our cash flow closely. List all the expenditures that we have, then categorize them. e.g personal item, mortgage, transport etc. It is important that you list all the expenditures because you really want to know where your money is going.

After listing your expenditures, indicate whether they are your needs or wants. You must justify whether it is a need or want. Finally, what you need to do is to plan your budget in an accounting format. As a guideline, your savings should be at 20% of your total income. Now that you can see how every dollar is spent, I'm sure you will try to modify your budgeting to accommodate your income. By the second and third month, you will know where your strength and weakness financially.

If you know how every dollar is spent, the next time you get an increment or bonus, you will know how to take care of that extra cash. You will not be spending extra cash impulsively anymore. Why? It's because, human beings can react better when they are able to see. Seeing is believing!

Let me recap on what you have to do the next time you are getting your pay,

1) Save 20% of your income
2) List all expenditures
3)Plan your budgetting
3)Follow the budgetting!!