As we mention before why we need to saving, The next question how to start make a saving. Ok time to learn it;
STEP !. Figure out where you stand now
The question begin with where does your money come from? It could be from your income, your spouse income, or from other source.
Then where does your money go? (food, housing and utilities, personal care, clothing, education and recreation, medical care, pay loan, saving etc)
The next you must subtract your total income with your total expenditure.
What you get after that?
* If you came out with extra money, that's good for you. So you can put it someplace safe for your future need.
* But if you run out money or there were no saving there is work to be done. Check out all your expenditure, its time to cut down your living expense
Prioritize your expenses. After that, you are ready to figure out how to reduce expense
STEP 2 set goals for saving
It is easier to save when saving for a reason. It could be for retirement plan, education plan, house down payment saving or you just want to buy your household
or anything for your hobbies.
First time you must do, pay your debt first, never forget to pay until your debt overdue. Try to pay more than minimum, it could be up to 15% of your income.In this amount you can get out from your credit card debt quickly.
Then try to put aside 2 month living expense, just in case you lose your job, you still have enough saving to support your living expense until you get a new job
Beside that its wise to have emergency fund separate from your saving, remember once you use your emergency fund, you must replace it.
If all done now you can start to put your saving on your saving post. Make an exact amount, it will drive you to know what you must save
For example :
Retirement saving $ 72000
Education saving $ 30000
home down payment saving $ 20.000
etc
After that you can divide it as long as you want to saving
example
retirement saving $72000. You are at 25 now and will make a saving until 55
So you must saving $2400/year or $200/month
STEP 3 Choose a place to help your money grow
Let us look at the ways beginners to save. Go to the bank, choose the proper bank with a good reputation so you wont worry your money will lose
because the bank bankrupt. Make the different account from your daily account, account to receive your salary or for full fill your daily expenditure.
If you put in the same account you just can draw it, and don't remember its a saving for special purpose.Choose the saving form that suitable to your need
Happy saving!
Badet
April 16, 2009 at 10:39 PM
Learning how to save is one thing that everybody should be doing from the time they started working.
Carlos
April 20, 2009 at 7:59 PM
Hi,thank you for the visit.Have a pleasant day.