How To Go About Saving Every Month

We all agree that it can be difficult to save each month, especially with the cost of living and expenses that just seem to escalate on a monthly basis. It is however essential that you make some sort of long term plan to save something each month, even if it means going without that new pair of designer boots that you have your eye on. Apart from saving for your retirement, which most people do by contributing to a monthly pension fund, you also need to have funds set aside for a rainy day. There is nothing worst than your car needing urgent repairs and you not having the funds to get it done. Make sure that you have a separate account with at least six months worth of Salary put away, as you never know when you will need it. At least if you loose your income for a while you will be able to survive for a while. The best way to make sure that you put away something each month is to have a set debit order going off your account on the day after your salary comes in. That way you won't be able to spend it. There are plenty of endowment policy type plans or even tax free savings plans that you can contribute to each month, and you will be amazed at the growth with interest after a couple of years. Even as little as a R100 per month can go a long way to making your future more rosy. My Dad always used to say - save 10 percent of your monthly income, then at the end of each year you can take 10 percent of the interest earned for the year and treat yourself to something special. The first few years may just be a chocolate or item of clothing, but after that you will be amazed at how compound interest can make your savings grow. Also most of us know that just having a pension is just not going to cut it for the future, you need to make sure that you are as financially stable as possible well into your golden years.

Saving Money - Make It a Part of Your Family's Budget

Do you find yourself envious of those who have a savings account? Have you ever found yourself having to charge unexpected expenses on a credit card because you don't have any money saved? If you lost your job, would you have any savings to cover your living expenses?

You may really want a savings account, but aren't sure how those who have one actually do it. Maybe you've tried, and just don't seem to have anything left over each month for savings.

Financial experts across the board recommend having a savings account, however. So how do you go about it? Here are some tips for making saving money a part of your family's budget.

Pay Yourself First

One of the reasons many families feel they can't afford to save is that they don't seem to have enough left over after everything's paid. But what if you put money into your savings account first, and then tackled your other expenses with what's left? Think in reverse! It might help to make it a percentage, say 10%, of your income. You'll learn to mentally note this so that you recognize right away that a $1000 check is actually a $900 one.

Windfalls

Has anyone ever asked you how you're going to spend a certain amount of money? Maybe it's a pile of cash you received as a gift, a tax return, a bonus from work, or some other way that you receive money over and above your usual income. A key to saving is, don't earmark the windfall! Instead, put it in your savings account (unless you have an emergency need for it right away) and use as needed. This requires some discipline, especially if someone gives you cash as a gift and wants to know what you spent it on. But this habit of putting windfalls into the bank is a great way to jump-start your savings account.

Study Your Budget

There's nothing like a budget to show you where you can cut back and save more. Review all those optional expenses - cable, eating out, phone apps, whatever - and see where you can trim unnecessary expenditures. Then move that money over into savings.

Split the Costs

When it comes to involving your kids in the family budget, include them in expenses, too. Various lessons, sports and extracurricular activities can cost a lot of money. If your child wants to get involved in something like this, have a portion of the expense (such as for equipment or uniforms) come out of his or her allowance or birthday money. This helps not only to save money but also to encourage your kids to think before committing to an activity.