Saving Money Tip : How to have a balance spending and saving?

How to have a balance spending and saving?

To make this possible, start with a budget and make your money dreams come true!

Step 1.

List out goals.

At the top of the list is the "Emergency Funds". You will need at least 3 to 6 months of your income as you will be needing it to get you through a downturn.
Next, your long-term, big-ticket dreams, such as paying off a debt, buying a car, and financing your kids education Then list down personal and household needs and wants that you want to purchase within the next 6 months.

Lastly, small money goals such as eating in a restaurant or getting a manicure once a month.
Next to each goal, estimate the amount you'll need.

Step 2

Aim to save

Pay yourself first! This means putting 10% of your monthly gross income into your savings account.

Step 3

Track spending.

Get a small notebook and pencil, stash it in your purse and note every single daily expenses up to the smallest stuffs such as candies, newspapers, or coffee. This will give you a hint at your spending habits.

Step 4

Tally expenses.

Set up some categories such as Housing, Transportation, Insurance, Food, Personal Care, Medical, Children, and Miscellaneous. Create sub-categories for each, such as cosmetics and clothing under personal care and so on. Add the expenses each category.

Step 5

Identify waste.

As you take note of your spending habit, you will find asking yourself "Do I really need this?" Assess the way you're throwing away your cash. And make it a kick-start for your "spend less, save more" plan.

Step 6

Take back money.

Start by cutting in half things you can't afford to eliminate. Just by halving a P100-a-day coffee habit, you'd save P18,250 a year. Cut items that you don't really need that much and substitute in low-cost ways to share family togetherness Think of budgeting not as sacrifice but as a make-life-better mission.