Live within your means.
Whatever your income is, do not spend more than you bring home every week.
Do not finance your lifestyle with debt. It’s easier to save money every month if your partner is also helping. Discuss your money matters with your partner. A budget is more likely to be a success when both parties arrange it together. When you work as a team, neither person wants to sabotage the budget, so plan business, personal purchases in advance. Don’t make major purchases on impulse. Avoid the lure of credit cards if you want to save money every month. If you don’t pay off the credit card balance every month, the issuing bank charges you interest.
If the bank doesn’t receive your monthly payment on time, you will also be charged a late fee.
A used car is generally a better value than a new car. In its first three years, the new car depreciates by as much as 73% and insurance premiums are higher, best of all, if you buy a lower priced used car, you may be able to pay cash up front and avoid high finance charges. If you are single you do not need life insurance, no matter what the insurance agent tells you. but “term life insurance,” which does not pay except in the event of death, has lower premiums and will provide security for your family.
To protect yourself against unemployment, create a second source of income for yourself. The extra income can be saved every month. Keep your eyes and ears open for self employment opportunities. To save money open a savings account and start saving now. Save enough to cover your expenses for six months.
Save money every month by putting 20% of you income into your savings, if you can possibly do so. Have a goal when you save money, like a new home or getting out of debt. To save money every month, budget for your expenses. Keep track of what you spend daily on coffee, snacks, fast food and impulse buys. When you control those little purchases, you’ll be amazed at how much money you save.
Find inexpensive amusements. Let’s face it; being on a budget is no fun. To avoid getting discouraged, you need to make your own fun, so that you’re not drawn back into the buy and spend cycle.
Perseverance is the secret to financial success. If you fall off the horse with an impulsive and unnecessary purchase, don’t feel that all is lost. Recognise that you are a creature of habits, and changing money habits takes time.