Thursday, November 11, 2010

Save Your Money with the Luxurious Living

Saving money can be a tough challenge. Saving is anything but instant as we are living in a society where we are used to immediate indulgence. With the current economic collapse, many people are learning the hard way on why saving is imperative.

Now they just have to figure out how to save money. The first thing that has to be done is to get out of the immediate indulgence mindset. Remind yourself how beneficial saving money can be. Write down its benefits to give you tangible proof that saving is necessary.

You will keep on saving when you see something you think you just have to have. Next is learning the basics. Why not learn from the experts? Your parents can teach you how they budget the expenses at home. Ask them how much heat, water and electricity cost each month.

Such details might be boring for you but you have to learn about them. By the time you leave home, you will have to start paying for these things yourself. You must also identify the challenges. Learn to control your spending.

This may be easier in theory than in practice, especially if you are only receiving an allowance or you live at home. Because your parents are likely handling most of the expenses, you would tend to spend your money easily since a large amount would always be available.

And admittedly, spending money can be fun. Your peers can contribute greatly to the challenge, though. This is because they might pressure you into spending more than what you can afford. Shopping has become a main form of entertainment for most teens.

They seem to have an unwritten rule that you can’t have fun if you don’t spend money. You must also learn the difference between need and want. It's easy to see something in a store that you think is important. Try to walk away from anything you believe you need or want the instant you see it.

If you find yourself thinking about buying it later – after a week or so - and you have sufficient amount of money to purchase it, then you can buy it. Chances are, you really need the item. If you stop thinking about it quickly, then you really didn't need it in the first place.

Always be in control. Plan ahead. Do not spend your whole paycheck or max out your credit card in one night. You should also set a limit to your spending. It may be wise to put money in the bank and take out only the amount you need.

It may also be more sensible to go shopping with friends who are careful with their money. Learn to manage your expenses. Keep a record of your purchases. For at least a month, keep track of the money you receive and the date you received it. Make a note of each item you buy and the amount it cost.

At the end of the month, calculate the difference between the amount received and the amount spent. Make a budget. List all income you expect to receive in a month and write down how you plan to spend your money. Also, record all unexpected expenses.

Avoid having debts. Ask yourself honestly if you can afford to buy an item. Look around and do comparison shopping. Many people seek the best price when purchasing goods but settle for whatever interest rates are offered by the merchant.

Compare annual percentage rates of banks or credit card companies to see if you can get a lower rate. If you become burdened by debt, seek help. With practice, these tips on how to save money can change your finances.

You can use all these strategies to save money, reduce debt and improve your life but it will not last unless you have a system automatically set up to continually work without your input. Get Dan Cavalli’s FREE money saving secrets set on auto pilot at: .

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