Guide to Saving Money With Minimum Stress 

Saving money is not as difficult as most people think it is. With a little bit of imagination and discipline money can be accumulated for various purposes.

The idea of saving money for a rainy day has fallen by the wayside due to the advent of credit in multiple formats. At present most people have at least one or a combination of a variety of loans such as home loans, business loans, personal loans, equipment loans, car loans and credit cards. Instant gratification is frequently the name of the game. Saving money over a period of time to buy what is required is not very fashionable.

Saving money can be achieved by following a few simple steps and without much hard work. One of the important aspects of saving money is to have a budget. Lets assume that a budget has been established and look at the word Saving and work with it.

S is for a System Established to Put Money Aside

It does not matter whether you use empty jam jars, a piggy bank or a bank account, putting money away and not spending it is the objective. Of course, money in a jam jar is not a good policy for two reasons:

  • It does not earn any interest, and
  • It is easily accessible and therefore easy to spend.

The best system would be to open specific savings accounts. In fact with the advent of the internet it is possible to have many savings accounts designated for different purposes. The important factor is that these accounts should not be easily accessible to avoid temptation.

For example;

  • An account to pay future bills
  • An account to save money for a future holiday
  • An account to save for a large household item such as a new TV or a refrigerator.

A is for Accumulation of Funds

Saving does not have to start with a lot of money. Small amounts deposited regularly and not withdrawn will soon add up.

If saving to pay future bills such as utilities or rates, the simplest way is to divide the total amount that needs to be paid by the number of pay periods before the due date and put that into the savings account established for that purpose.

Saving for a holiday is much more flexible. You can put all your excess funds into the holiday savings account. This why a but is necessary. To establish the amount of the excess money.

V is for Various Methods of Saving Money

It goes without saying that need to have money to save money. There are many avenues to look at when it comes to spending less money. Some of these are:

  • Using discount vouchers from stores,
  • Car pooling to save on fuel,
  • Eating more home-cooked meals and not having take-aways or eating out,
  • Buying things at sales at the end of a season.

With a little imagination I have no doubt that many people can come up with a multitude of ways that they can save money. The thing to remember is that every little bit helps.

I is for Investing to Make the Savings Grow

Savings accounts are good for putting money into for short term purposes such as paying household bills. However, if the purposes of saving is to accumulate a larger amount, such as for a deposit to buy a property, and the savings are going to sit in the account for a longer period of time (two or three years), then other types of investments suited to grow your money should be considered.

A term deposit is a good risk free option. However, there are other avenues such as investing in bonds or shares that can be considered with professional help.

N is for Now is the Time to Start Saving

It does not matter at what stage of life or the working cycle you are in, a savings plan should be put into practice now. Every day you put it off means that you have missed the opportunity to save a few dollars. Taking action, any action, is the key.

G is for be Generous with Yourself

When setting the budget, the amount you want to save should take priority over the spending. It is said that one should aim to save at least ten percent of one’s earnings. Think of this as a minimum and be generous with yourself and try to save more. After all you are saving money for yourself and your future.

About the Author

G Buckingham