A great number of people are still bouncing back from the financial crisis. If you happen to have a source of income, you want to make sure that you are doing something with your money. The best thing you can do with your money is to save it. The skill of saving is not hard to learn. All you have to do is remember and carry out these 11 habits of a wise saver.
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Pay off Your Debt
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Photo Credit: quaziefoto
Before you can actually save anything substantial, make sure that you have paid off all your debts. There are many systems and practices to help you pay off your debt so look around to find one that best suits your situation.
Put Away 10% of Everything You Receive
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Photo Credit: stevefaeembra
To ensure that you have savings, put away 10% of every paycheck that you receive. You can do this manually or by using an automatic transfer system.
Frequently asked questions
Being a wise saver means making smart choices about spending and saving money. It’s about finding a balance that works for you, so you can enjoy life now while also preparing for the future.
Start by creating a budget. Track your expenses, cut unnecessary ones, and set savings goals. Automate your savings if possible—it makes the process a lot easier!
Yes! Wise savers usually have habits like setting clear financial goals, living within their means, saving before spending, and continually educating themselves about personal finance.
It can be! The key is consistency and starting small. Even saving a little bit every week can add up over time. Plus, once you start seeing your savings grow, it can become really motivating.
Set specific, meaningful goals. Maybe it's a vacation, a new gadget, or an emergency fund. Regularly remind yourself of these goals, and celebrate small milestones along the way. Think of the bigger picture and the stress-free life you'll have with financial security.
Open a Savings Account with Interest
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Bank interest is not much but with the passing of years, the amount can add up. Open an interest-earning savings account with a bank that you trust.
Have an Emergency Fund
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Photo Credit: Dallas photographer Scott Dorn
Aside from the money in your savings account, you should also have a 3 to 6 month emergency fund. As with your paycheck, you can transfer money to this account manually or automatically. Use the money in your emergency fund for unforeseen events or when you happen to become unemployed.
Ditch the Credit Card
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Photo Credit: Alex Segre
Using a credit card makes it so easy for you to spend and eventually acquire debt. Cancel and cut up your cards to stop the cycle of convenient spending and debt acquisition.
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Pay in Cash
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Paying for everything in cash forces you to allocate enough money for the different categories in your budget. When you run out of cash for a certain category, then that means you have to stop spending.
Pay the Full Amount
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Payment plans usually add interest to the full amount of an item. Don’t think that because you are paying a small amount every month for half a year you are saving money. Add everything up and you will see that you have been actually paying more.
Create a Budget
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Assess your daily, weekly, and monthly spending. Determine which expenses can be eliminated and then proceed to create a budget. I like to overestimate the amount a little bit to give room for adjustments.
Live below Your Means
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Photo Credit: Jeanique
Look at your life right now and find out what it is that you really need. You will find that you don’t need a lot to enjoy and survive life. Live below your means and discover that you actually have a lot of money to put into your savings or emergency fund.
Buy Used
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Photo Credit: .jacquelyn
Learn to determine whether you are actually saving money on a sale or bargain item. Better yet, choose to buy used when you can. Buying certain items used, rather than brand new, will help you save money.
Minimize or Eliminate Eating out
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Eating out can slowly but surely drain your budget. Eliminate eating out or limit doing it on very special occasions. Cooking your own meals is healthier and can help you save money.
Please know that I am not a money or finance expert. I found out about these habits through reading blogs on the subject matter and through my own experience. These habits are just simple ways to get you on the road to saving money. You can consult websites, books, and experts for more detailed information on each habit. Just remember that once you decide to change your spending habits, you are also deciding to change your life.
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