• Professor

How to save money

How to save money each month from your salary?

Have you ever given a serious thought on how much money is actually left in your pocket at the end of each month?

What if I told you that you could simply save even more and all you've got to try to is pay yourself first?

Seems simple enough, yet not many do that. Many families just save whatever amount is left over at the month’s end.

Yes, many bills and expenses are monthly necessities, but there can also be tons of unnecessary spending happening in your life.

Spending money isn’t a nasty thing, but if you aren't saving for your future the maximum amount as you ought to then you would like to re-evaluate what you are doing.

Paying yourself first before you buy your monthly necessities could also be scary. Nobody wants to over withdraw from their bank account or be unable to pay their monthly bills.

However, your future is simply as important too, so it's far better to believe in saving money as a 'COMPULSORY THING' rather than something which will be ignored.

Sadly, there are many out there who don't save enough money when preparing for retirement. It is seen that 72% don't save enough for retirement. Also, 36% of individuals have absolutely NOTHING saved for retirement.

These numbers are very alarming.

Only if we paid more to ourselves first, it would not seem impossible to save for retirement and achieve other financial goals.

So what does it exactly mean to pay yourself first?

In case you read all of the above and you still aren't sure what “pay yourself first” means, some background information could also be needed.

Paying yourself first is once you put money into savings as soon as you receive your paycheck. Or, I do know some who “pay themselves first” by putting extra cash towards their debt. There's no right or wrong answer – basically, just pay off or save towards whatever you think that you should do in the FIRST place.

This is the primary thing you are doing with each paycheck – you don’t even pay your other bills first. You can consider savings (or debt) the very first bill you've got to pay monthly.

It may allow you to save lots of extra money and crop on unneeded spending.

As I said at the start, you'll be ready to save extra money if you only pay yourself first. Learning to budget with just the quantity of cash that you simply have leftover after you pay yourself first each time can assist you to save extra money. Yes, it's going to be difficult initially but gradually you'll know how to live on less money.

You may need to do some cutbacks together with your budget or find ways to generate extra cash, but by only having a limited amount of cash to spend monthly, you'll find that you simply will watch your spending more closely.

This may allow you to actually see what's really needed and what's just a want.

Paying yourself first can assist you to guard yourself against the uncertain future.

Your future is vital. By waiting to save until the month's end and just saving whatever you've got leftover, you're not prioritizing what's important in life – your future.

By paying yourself first, you'll believe your future more and you'll make it a priority.

It doesn’t need to be difficult to pay yourself first. Once you get into the routine of it, it becomes quite easy to pay yourself first. Here are my tips to get you in order to pay yourself first: • Take a glance at what proportion you're currently saving and spending monthly. Start tracking your spending somewhat more closely and see what proportion of that's actually unneeded. Calculate what proportion money you ought to be saving monthly and set that aside at the start of every month. • Make it automatic. To simplify your finances, you'll want to line aside a selected savings amount monthly automatically. • If you are feeling uncomfortable with paying yourself first, then you'll want to seek out ways to chop your budget back or make extra money.

Do you pay yourself first? Why or why not? Comment.

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