Having large income is indeed an achievement. You work hard to achieve such status. However, these days, the more important question is how much money do you save? It does not matter how big your income is per month if you blow everything off almost as soon as you received it. The worst part is that many people do not realise where their money went because they spent it too thoughtlessly and carelessly. It is not good to fall into such habit. If you wish to achieve bigger goals like a new car or perhaps buying your dream house for your family, then it is best that you start saving more money now.
It is time to assess your current spending habits and the way you manage your finances so you can finally start the road to achieving bigger goals in life. We will discuss some of the things that you should stop doing to be able to save more money.
Impulsive shopping –most people love to go to the mall especially during payday. And this is often the cause why many people cannot save money. They see something nice, they buy it in an instant only to realise at the end of the day that they do not actually need it. This is something that you must avoid because most money are indeed wasted because of impulsive shopping. The best that you should do is before you go shopping, list the things that you need and the ones that you really want to buy. Then, you should stick to your lists and avoid buying anything that is not listed. This can also help you set your budget for shopping.
Buying signature brands –yes, you definitely deserve to reward yourself after working so hard. However, this does not mean burning all your hard-earned money in one designer bag. You should be practical too. Do not spend too much money on signature items like expensive clothes, bags, shoes or watch. You can treat yourself with one nice handbag every once in a while but do not make this a habit every pay day.
Maxing out your credit card limits –credit cards are temptations that you should most definitely avoid.It is fun and easy to buy things that you like even expensive ones when you have credit card that you can easily swipe like a magic card. However, the dilemma occurs when you receive your bills. And once this habit gets out of control, you can easily drown in debt. So make sure that you use your credit card responsibly. In fact, it is advisable that you pay cash on your purchases instead of using credit card.
Late payments –bills to pay is a big part of adult life. There are tons of bills that you need to pay every month and sometimes, it is tiring to go to the bank to pay your dues. You wait for the final notice before you pay your phone bill, credit card bills and other monthly dues. Well, the consequence to this is that you pay late payment fees. It is best that you make sure that you pay on time to avoid unnecessary fee that you could spend on other important things or even add to your savings.
You can indeed seek assistance of a home loan to buy your dream house but you still need to have enough savings to get approved, whether fixed home loan rate or variable home loan type. Therefore, it is advisable that you take into consideration the tips that we discussed here to improve your savings for your future.