Majority of the people have mastered the art of earning money, but only a few of them now how to save it wisely. One of the most affected groups is the young people who have started earning a decent salary in their first jobs. In most cases, you will find that they spend their money on meaningless items and gadgets, some of which they could do without. Their money is not budgeted and at times runs out before the next payday. This compels them to borrow from families and friends or ask for an advance pay from their employers. The cycle of borrowing and paying back with their salary becomes a never ending rollercoaster. There are various ways, however, if implemented wisely can see you save a considerable amount of your income and live debt-free.
- Buy only the things you need
The temptation to buy the latest phone or the biggest TV is very high when you get your salary or strike a huge deal in your business. Always ask yourself whether the item or gadget you are planning to buy is of more essence than the one that you already have. The upgrading to the latest trend may not be the best idea for a business-minded individual, but rather you should seek contentment in what you already have at the moment. The cash intended to buy some of the luxurious equipment can be deposited in a savings account for a later and more meaningful use.
- Save before use
The habit of saving what is left after saving is very common to people. For you to make a decent saving, you should ensure that you set aside money that is not to be used on anything and then spend the rest accordingly. Having this principle ensures that you stay away from buying things that you do not need or fall into the temptation of wasting it on luxuries with friends.
- Open a savings account
Money saved in a current account is always tempting to use as it can be withdrawn at any time of the day or night. Having a locked savings account ensures that you are restricted to the number of times that you can withdraw your money. In most cases, locked savings account does not have an ATM card. This means that you can only access your funds via the bank teller, at the designated time. Most people tend to spend a high amount of cash during the weekends partying and travelling with friends. At times, the cash at hand may run out leading them to the ATM machine to make an unplanned withdrawal. With a savings account, you are restricted to your budget as you cannot access the banks at night or during the weekends.
- Invest in spread betting
Spread betting is closely related to forex trading. Having your money in a bank account may not give you decent profit at the end of the year. Spread betting allows you to trade and make profits faster if you do your homework that is. While in the business, you should do a thorough research and find tools that can assist you in making profits. There are many resources available online which can help beginners acquire the required spread betting experience. As a newbie, you may choose to start trading with renowned companies like CMC Markets to try spread betting. The company offers a simple platform which is easy to understand and an exceptionally helpful customer care representatives.
The whole idea behind saving is to multiply your wealth and attain financial freedom. When you make saving a habit, it becomes enjoyable and spending becomes a thing of the past. The joy of seeing your wealth grow by the day compels you to save even more. With proper saving and investments, you will be out of your boring 9 to 5 job before you realise it. The secret behind saving and investing is to never cease learning and keeping yourself up-to-date with the current market trends. You should also ensure that you diversify your savings and investments and never put your eggs in one basket. This will help you in having different sources of income even when one or more sources are sinking in losses, you will be certain of retiring a wealthy person.