How to Save Money

by Bogdan Moisa

Saving money is essential in our precarious economical situation. Having some money put aside for rainy days can be of real help in tight situations. Besides this, saving money will allow you to accomplish greater projects like going on a journey or investing in a business. 

People spend more than they have on things that they don't need. The toughest challenge when saving money is resisting the temptation to spend. Money seems to have no value if we don't immediately buy things with them. But this is a subjective view. Objectively speaking you can have a pleasant life without spending a lot of money. Discipline of mind is required when saving money. 
Get rid of debts. Debts are a real drainage on your savings. As debt pile up, so does stress interest rates. Having a clean sheet is essential. The more you postpone paying back your debts the more you'll have to pay. If you can't afford it right now, try to control your debts from growing too large.
Knowing what you want to buy and how much does it cost can make saving money easier for you. For example if you want to go on a journey, calculate how much will it cost. Let the total price be your saving goal, so you'll need to save that much money to be able to go on the trip. 
Setting a time limit is also essential. People work better under pressure and you will think twice about spending money. Of course, pick a time frame that it is realistically. You'll need to determine how much you'll have to save per day/week/month. 
The more you know about your finances, the easier it will be to control your expenses. So grab a pen and a notebook and start putting down all the things that you have to pay for every month. Start with rent or mortgage payments, continue with taxes, utilities, food and finish off with extras which will include sweats, money spent in bars, clubs, cinemas etc. Keep your notebook with you and note down every night how much money you've spent. 
Quit smoking. Smoking can be quite expensive, especially if you smoke a lot. Try to quit or manage your habit so that you can spend less on cigarettes. 
Do not save what it is left. Instead take the money you save out of your income first. Then start saving. This method will guarantee a budget every month, so start applying it.