A lot of people struggle to pay their bills and have money left in the account at the end of the month.
It’s tricky to save money, especially if you are leaving by yourself and have lots of bills to pay. How is it possible to save money when you don’t seem to have enough for you?
The answer is simple, get your finances organised with this simple steps I will show you today:
1#Create a List of Reoccurring Expenses
That is your must pay bills such as your rent, utility bills, transport, food, fixed expenses you know you have to pay every week or month. By doing that, you are determining how much of your salary is already compromised and what is left of it!
Now it is the time to think about how much you can commit to putting a side every time you get paid. It’s important to stick with it, so make sure you come up with a realistic amount. However do try to push yourself a bit, after all you are trying to save for that awesome holidays!
2#Open a Savings Account
Yep, you need to set up a savings account to separate your holiday savings funds from your everyday money.
By doing that, you will be:
- less likely to spend your holiday savings because it is not in your everyday account, therefore it eliminates the risks of you expending that money by mistake
- more likely to save more because normally savings accounts are not linked to a key card, so it is less accessible
- able keep track of your savings on monthly/weekly basis
- hopefully earn some interest
- develop a good sense of finance management, because you are able to control your expenses, you will hopefully get that feeling of achievement and be motivated to do more of it!
3#Set up Automatic Funds Transfer
Most of the banks nowadays offer free online savings accounts, which means no account fees at all, they normally have competitive interest rates and are easy to manage by online banking. Normally online banking platforms let you set up automatic debits and credits between your own accounts, that is called AFT (Automatic Funds Transfer). If you are serious about saving money, setting up an AFT from your salary account and to your holiday savings account is definitely going to help you get there faster.
An effective way to do that is by having that set amount debited your account on the day or next day after you get paid, to ensure you have enough funds and a clear understanding of what is left for you to expend.
These three money saving tips are sure to help you to save money and take that awesome holidays you have been dreaming about sooner than you think!