How To Save Money Properly

Written By: Gily Tenorio on September 16, 2010 No Comment

Many people find it hard to save money due to the fact that there are lots of expenses and bill that you need to pay. There is also steady increase of commodities and services making our money less in value. It is like a money is draining in our bank account or wallet so easily.

If you are an ordinary employee, you may say your salary is not enough for your expenses so you cannot save because there is no money left for you. I agree that is true, but I believe you can still save as long as you have job. If you do not have job, its obvious you cannot really save since there is no cash coming in. Here are the three easy ways to save money even if you have a low salary.

1. Live below your means

Start to live below your means in order for you to save. In other words, do not spend over what you earned. For example, if your monthly income is $4,000, you should not spend above $4,000. Live below $4,000. How can you do this? By controlling your expenses and self-control. Do not be a show-off to other people. Live your life to your true earnings.

2. Pay yourself first

This second tip is very effective way to save money. You need to set aside at least 10% of your monthly salary and you should faithfully put it in other savings account so that you will not be tempted to spend it. Try this one and you will be surprised that you are able to save money even if you have many expenses. Remember: pay yourself first at least 10% of your salary every time you received it.

3. Control your expenses

One sure way to save money is by controlling expenses. Another one is to increase your capacity to earn. So if you focus on controlling expenses, you can do this by setting a limit to your monthly expenses, cut your spending on unnecessary purchases and by monitoring your spending habit. It will surely give you the boost on how to save money.

There are many ways on how to save money. When you search in the Internet, you have lots of information that can get about saving. In this article, there are three ways I listed on how to save. First, you must pay yourself first. Second, live below your means. Finally, control your expenses by making a budget. In conclusion, saving is not hard to do, you only need proper learning and self-control to do it. After that, saving will be easy as the time goes by.

Gily Tenorio is a personal finance blogger who likes blogging on saving, investing, stocks, mutual funds and make money online. To get more information on how to open a bank account at Philippine National Bank, you may go Free Financial Management blog for free articles on financial management, saving, investing and online money making.