"Too many people spend money they buy things they don't impress people that they don't like. "

- Will Rogers -


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8 Basic Steps How To Save Money

Admit it or not, when payday comes we tend to overspend rather than save a portion of what we've earned. We become impulsive the moment we have our pay check in our hands. We buy stuff that are not actually neccessary. We spend for the mere purpose of satisyng our own pleasure. We forego a future benefit in order to obtain a less rewarding benefit. Oftentimes, the most basic things are the ones we forget. But, when faced with financial setback, we suddenly realize how much money we've spent for the things we didn't really need.

Having a financial crisis at one stage or another in our lives should be enough for us to learn how to keep our expenses right within our means. Each one of us should know how to value our hard earned money. Avoid having the same financial struggle from pay check to pay check or month after month. The only way to make that happen is to have financial objectives for ourselves.

Here are the 8 basic steps on how we save money and achieve our financial objectives.

Track your income and expenses

It is indeed a good habit to be always on top of your income and expenses. Create a way on your own and you will never loose a dime.

Avoid spending more money than you make

It is easy to live a lifestyle more than what you can actually afford. However, you must always bear in mind that Living paycheck to paycheck is not that easy at all.

Never buy anything based on impulse

Purchasing things based on impulse is considered as unplanned spending. Spending out of your budget will only cause disruption on your financial stability.

Always pay your bills on time

Paying your credit card, water, electric, telephone bills so on and so forth can help save money. Why let yourself pay penalties when you can pay your billers on or before your payment due date.

Keep money in your wallet to a minimum

One best way to control yourself from spending too much is to just keep a minimum amount in your pocket. Simple as that!

Treat your household like a business

Be like and think like an entrepreneur or a businessman when it comes to your finances. Find ways on how you can maximize your income.

Save at least 20% of your income

If you are eager and sincere to save money for your future simply follow the 50/30/20 rule of thumb. 50% of your income goes to necessities. 30% goes towards discretionary items. 20% goes to your savings account.

Always keep a budget

Spending you hard earned money also needs planning. The process of planning to spend your money is called Budgeting. This will well you determine in advance if you'll be short of money until your next pay day comes.