Saving Money is something important as it helps at the time of need. Money should be saved from Monthly or Weekly Income to Prevent the Hassle when Funds are needed urgently.
Below are some Simple Tips Pertinent to Better Finance Management that can be adopted for Saving Money.
Spend a Maximum of 85% of the Net Income
An Individual must realize his available resources and expenses. Although the Global recession and High Inflation of Prices has created difficulties for Individuals in arranging enough money to keep their living standard intact but still individuals need to reduce their expenses.
If Money is to be saved an Individual should not spend more then 85% of his Net Income. The Spending of Extra Money should be avoided.
Prepare Budgets for Upcoming Month
Budget is plan in monetary terms that determines how much money an individual should spend according to his earnings. Budgets should be prepared every month and must be followed. Realistic Budgets should be prepared with Expenses less then 85% of Net Income. Expenses should be categorized and full effort should be applied to reduce expenses.
Take Record of Earning and Expenses
The Income should be recorded when it is received and the Expenses should be recorded when they occur. A record should be kept of the Income and Expenses along with the Date and Time.
Try Not to Keep Credit Card
Credit Card should be avoided if money is to be saved. Credit Card Psychologically persuades an Individual to purchase something that he can not afford. It is better to keep a Debit Card otherwise the Individual may entangle himself into Debts instead of making handsome savings.
Monitor your Report and Look for Deficiencies
The record of Past Expenses and Income must be reviewed before preparing the Next Budget.
Reviewing Budgets unveil the Deficiencies and Strengths fo an Individual in Finance Management. Sometimes a Product is purchased at a high price from an Expensive Store while the same product could have been grabbed from any other store that offers rebates on shopping. Such Errors should be eliminated.
The Financial Position of an Individual does not Matter. If an Individual Manages his Money Effectively he may Feel that after one year he has generated sufficient savings and at that time spending the savings in irrelevant works should be avoided.