Saving money can be hard when there are so many nice things and expenses. It doesn’t help that I am a foodie too! Argh!
Thank goodness for these tips which my friends shared with me and from the books they recommended.
#1 Pay yourself first
This simply means that you set aside a portion to save the moment you receive your salary. It could be as little as USD10 although I encourage you to save a lot more!
After setting aside your savings, plan out how much you will need for the month. There will be some months you’ll be spending more, for example on your birthday month! Yes, it is the Myanmar culture for the birthday person to treat his/her friends to a meal.
#2 List out the items you need and schedule them
Listing out the things you need to get and places you need to visit works wonders in helping save time and money! By listing them down, you will realize that you may just need a day each week to run errands.
#3 Cut down on the negotiable items
What’s a negotiable item? It could well be a luxury item. One good example is purchasing branded items. Owning a piece of branded item will definitely make you feel good. You will get more attention and stand out from your peers. Another example can be found here.
Instead of allowing your expenditure on luxury goods and services to negatively affect your savings, why not think of ways to increase your income? Get some ideas from our previous article.
#4 Save all small change
Never underestimate of the power of saving banknotes of small denominations such as 100 and 200Ks (or coins if your country uses them). You can do so by keeping the notes of small denominations you receive as change in a separate wallet and store them at home. When you receive your salary add the amount of these notes to your portion that’s set aside for your savings. Deposit the money into you bank.
You’ll be surprised to how much you can save!
#5 Bring the amount that you need in your wallet (and slightly more)
I picked up this tip from my friends in Myanmar! Some of my friends in Myanmar don’t have an ATM card, so they cannot withdraw money. This helps them be more disciplined in their spending.
The trick here is to have a good estimate of how much you spend a month and subtract that from your salary. This has to be a positive number for it to work. Deposit the remainder into your bank as your savings.
Why is saving so important? Check out Point 1 in this article.
Which method of saving have you been practicing?
Which method will you use?
How much will you be saving from this month onward?