1. Don't buy things you do not need
Sure, it's easier said than done, but sometimes you might want to forgo that extra bottle of soda or bag of candy at the supermarket exit, or anything else that won't benefit you in the long run.
2.Figure out what you need to save for and how much you need to save
For short-term goals, this is easy. If you want to buy a video game, find out how much it costs; if you want to buy a house, determine how much of a down payment you’ll need. For long-term goals, such as retirement, you’ll need to do a lot more planning (figuring out how much money you’ll need to live comfortably for 20 or 30 years after you stop working), and you’ll also need to figure out how investments will help you achieve your goals.
3. Set savings goals
Once you determine how much you need to save, establish a timeframe (i.e. “I want to be able to buy a house two years from today.”) Set a particular date for accomplishing shorter-term goals, and make sure the goal is attainable within that time period. If it’s not attainable, you’ll just get discouraged.
4. Figure out how much you’ll have to save per week, per month, or per paycheck to attain each of your savings goals
Take each thing you want to save for and figure out how much you need to start saving now. For most savings goals, it’s best to save the same amount each period. For example, if you want to put a RM20,000 down payment on a home in 36 months (three years), you’ll need to save about RM550 per month every month.
5. Add together the installment amounts (monthly, weekly, or per paycheck) for all your savings goals
Can you afford to save this total each period? If so, great; if not, proceed to the next step.
6. Pay yourself first
Savings should be your priority, so don’t just say that you’ll save whatever’s left over at the end of the month. Deposit savings into an account (or your piggybank) as soon as you get paid.
7.Keep a record of your expenses
Write down everything you spend your money on for a couple weeks or a month. Be as detailed as possible, and try not to leave out small purchases.
8. See where you can trim your expenses
You’ll probably be surprised when you look back at your record of expenses: RM 50 on ice cream, RM 200 on parking tickets and tol? You’ll likely see some obvious cuts you can make. Depending on how much you need to save, however, you may need to make some difficult decisions. Think about your priorities, and make cuts you can live with.
9.Reassess your savings goals
If there’s absolutely no way you can fit all your savings goals into your budget, take a look at what you’re saving for and cut the less important things or adjust the timeframe. Maybe you need to put off buying a new car for another year, or maybe you don’t really need a big-screen LCD TV that badly.
10. Make a budget
Once you’ve managed to balance your earnings with your savings goals and spending, write down a budget so you’ll know each month or each paycheck how much you can spend on any given thing or category of things. Try to leave a little room for minor unexpected expenses.
11, Stick to your budget
A budget won’t do you any good if you don’t follow it religiously. Build some self-discipline, and remember why you’re on a budget in the first place.
12. Open an interest-bearing savings account
It’s a lot easier to keep track of your savings if you have them separate from your spending money. Look around for the best savings interest rate that offer by bank.
13. Don't use your credit cards
This is one of the most effective ways to reduce spending. Use cash for as many purchases as possible - you'll be more conscious of what you are spending your money on.
14. Kill your debt
Simply calculating how much you spend each month on your debts will illustrate that eliminating debt is the fastest way to free up money. Once the money is freed from debt payment, it can be easily re-purposed to savings.
Sure, it's easier said than done, but sometimes you might want to forgo that extra bottle of soda or bag of candy at the supermarket exit, or anything else that won't benefit you in the long run.
2.Figure out what you need to save for and how much you need to save
For short-term goals, this is easy. If you want to buy a video game, find out how much it costs; if you want to buy a house, determine how much of a down payment you’ll need. For long-term goals, such as retirement, you’ll need to do a lot more planning (figuring out how much money you’ll need to live comfortably for 20 or 30 years after you stop working), and you’ll also need to figure out how investments will help you achieve your goals.
3. Set savings goals
Once you determine how much you need to save, establish a timeframe (i.e. “I want to be able to buy a house two years from today.”) Set a particular date for accomplishing shorter-term goals, and make sure the goal is attainable within that time period. If it’s not attainable, you’ll just get discouraged.
4. Figure out how much you’ll have to save per week, per month, or per paycheck to attain each of your savings goals
Take each thing you want to save for and figure out how much you need to start saving now. For most savings goals, it’s best to save the same amount each period. For example, if you want to put a RM20,000 down payment on a home in 36 months (three years), you’ll need to save about RM550 per month every month.
5. Add together the installment amounts (monthly, weekly, or per paycheck) for all your savings goals
Can you afford to save this total each period? If so, great; if not, proceed to the next step.
6. Pay yourself first
Savings should be your priority, so don’t just say that you’ll save whatever’s left over at the end of the month. Deposit savings into an account (or your piggybank) as soon as you get paid.
7.Keep a record of your expenses
Write down everything you spend your money on for a couple weeks or a month. Be as detailed as possible, and try not to leave out small purchases.
8. See where you can trim your expenses
You’ll probably be surprised when you look back at your record of expenses: RM 50 on ice cream, RM 200 on parking tickets and tol? You’ll likely see some obvious cuts you can make. Depending on how much you need to save, however, you may need to make some difficult decisions. Think about your priorities, and make cuts you can live with.
9.Reassess your savings goals
If there’s absolutely no way you can fit all your savings goals into your budget, take a look at what you’re saving for and cut the less important things or adjust the timeframe. Maybe you need to put off buying a new car for another year, or maybe you don’t really need a big-screen LCD TV that badly.
10. Make a budget
Once you’ve managed to balance your earnings with your savings goals and spending, write down a budget so you’ll know each month or each paycheck how much you can spend on any given thing or category of things. Try to leave a little room for minor unexpected expenses.
11, Stick to your budget
A budget won’t do you any good if you don’t follow it religiously. Build some self-discipline, and remember why you’re on a budget in the first place.
12. Open an interest-bearing savings account
It’s a lot easier to keep track of your savings if you have them separate from your spending money. Look around for the best savings interest rate that offer by bank.
13. Don't use your credit cards
This is one of the most effective ways to reduce spending. Use cash for as many purchases as possible - you'll be more conscious of what you are spending your money on.
14. Kill your debt
Simply calculating how much you spend each month on your debts will illustrate that eliminating debt is the fastest way to free up money. Once the money is freed from debt payment, it can be easily re-purposed to savings.
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