Saving money is a crucial aspect of financial security. After all, savings allow an individual to put money towards their financial goals, ensure that their needs are taken care of in case of an emergency, and allow for purchasing wants as well. Ashish Bhandari realizes that the past year has been financially difficult for many families but, as things start to improve, many are looking to change their financial situations for the better. To do so, Ashish Bhandari recommends looking to ways that you can start to build savings- even if it is a slow burning, incremental process. Here, Ashish Bhandari of Dubai provides a few tips that will help you save money to put towards reaching your financial goals.
Record Expenses and Build a Usable Budget
One of the simplest ways to begin your journey of expanding your savings is to first keep track of how much you spend. Budgets that account for all your expenses will ensure that you can properly determine how much you will need to allocate for all your wants and needs monthly. For example, you will want to account for needs such as housing, food, and gas as well as other bills such as cellphone, internet, cable, etc. It may be daunting to try to estimate everything down to your smallest purchases, but it is crucial that you have an idea of how your expenses compare to your income. Remember that tools such as mobile banking apps can help you track your spending and can even be used to separate your purchases into categories that make budgeting more streamlined.
Cut Unnecessary Spending
Even the most diligent savers may have spending habits that that they are spending exorbitantly on without noticing. If you notice that your expenses are high in relation to your income, you may notice that there are nonessentials that you can cut back on to help you reach your savings goals. For example, if you spend a lot of your monthly income on entertainment or dining out, you may be able to determine ways to cut back on a meal or event to contribute to your savings. Even fixed monthly expenses such as internet, television, and cellphone bills may be higher than they need to be and can be replaced with cheaper plans or services if need be. Experts recommend many different practices for reducing everyday expenses. Community event listings can point out free or very cheap sources of entertainment to save on those expenses and unused subscriptions and memberships can be canceled.
Pay Yourself First
After calculating your expenses and accounting for savings you have made by cutting certain costs, you may find that you have money left over that is not already dedicated to anything. Ashish Bhandari recommends paying yourself first in these instances. This means that, whenever you receive your paycheck, consider putting a small amount into your savings account before you can spend it on anything unnecessary. What you may find is that you do not touch the money because of the extra effort that is required to use it. Financial experts realize that you may need to pull from the money that you have set up for savings if a financial obstacle occurs, but it is always nice to know that money will be there if the need arises. Paying yourself first works because it takes a lot of guesswork out of saving. The simpler you make it to pay yourself, the more likely you are to do it and continue to grow your savings.