Whether you are a young teenager who wants to buy tickets to attend that upcoming music concert of your favorite band, a fashionista who wants to buy the latest Prada or a dad who wants to pay his son’s college tuition, everyone needs to save money for some cause.
Personal savings are the certain amount of money, which you take out from your income and put it aside to be used for a cause later. This money can be saved in a piggy bank or more securely at a savings account at a bank.
Keeping personal savings is something that requires true personal commitment. You need to reduce your daily expenditures, planning on how you spend your income and managing your finances. Let us discuss a few tips you need to know to start personal savings.
Start with a small amount
If you were the kind of a person who has never saved anything in your life, then starting on a big personal savings plan wouldn’t be easy for you. Many experts believe that you should set a small goal for yourself like, for example, make a commitment to yourself that you will save $5 this week. At the end of the week when you have achieved this little goal, you will be excited and happy. Save another $5 for the next week and so on. The sense of personal achievement that you will get from saving each $5 bill would be so great that you will start to get familiar with this idea in no time and then gradually you can commit to saving more and larger amounts of money.
Everyone likes receiving gifts or rewards in return when they do something good. Experts say that when you start saving money you should do the same. This does not mean to spend twice the amount that you saved on the personal reward. You can give yourself a little treat if you have achieved your goal for the month and it can be something very simple and inexpensive. For example, plan that if you achieve the goal of saving $40 for the month of December then you will reward yourself with a nice walk in your favorite park or a hot bath.
Trim your expenses
The most important thing of all is balancing your income and expenditure and then reducing the spending so in order to save. Experts believe that you can start by making a list of your monthly expenses and then prioritize the important ones for example payment of utility bills and car fuel. You need to cut the expenses that are not important and merely eating away your money like for example buying that extra pair of shoes, which you do not need and probably won’t wear but are thinking of buying just because they are on sale.