So you have set yourself a goal of generating long term wealth, but you are unsure of where to start. Adopting frugal financial habits will be critical to your success, this all starts with learning to save money.
Creating a healthy attitude to spending will be essential to reaching your investment goals . Once you gain control of your finances you can start working towards a level of financial independence that allows you the freedom to do anything you please.
To help you hit these goals we have some financial experts to offer some savings tips to help you build your nest egg.
Start by setting a budget
It would be impossible to know how much money you can save unless you can first understand, and secondly control your finances. Once you set a budget, you can see where, when and how you spend your money, You then need to start working its parameters, and take the first step on your savings journey.
Savings should be automated
In the digital age, most financial institutions make automated transactions straightforward. Linking your savings account and your checking account could be easier and you can direct your bank to transfer a specific amount of money every month without ever having to worry about it.
Many employers have begun to understand the importance of financial stability in their Workforce and as a consequence, they can even split your pay check to ensure a portion of it goes into your separate savings account every month.
If your employer can facilitate this you can set up an auto-deposit this will happen on every payday, as these transactions become a habit you’ll eventually realize that you don’t even miss the money.
Reduce unnecessary spending
If you have the habit of buying a cup of coffee on your way to work every day and eating out three or four times a week, cutting this in half will instantly free up some extra cash that you could put towards other expenses and even into a savings account
Eating out and drinking coffee from outfits such as Starbucks are unnecessary expenses. The money you can save preparing your lunch and brewing your own coffee will quickly add up. Many people I know cook a little bit extra the night before and pack it for lunch the next day.
Take greater advantage of free offers
There’s a lot of truth to saying that the best things in life are free. Most of us are blissfully unaware of the number of free things we can take advantage of. Instead of purchasing books and audiobooks join your local library, they will give you free access to thousands of books instantly.
Skip the movies and go to the museum instead, look for free events in your local area, social media is the easiest way to find free things to keep you entertained.
Cut the cord
This practice is becoming increasingly popular as more and more people are turning to online services such as Netflix, Amazon Prime, and even YouTube as their primary source of entertainment.
If you have a satellite subscription, why not cancel it for a few months? Just to see how much money you can save. On average satellite subscriptions cost, $70 a month cutting the card could put nearly a thousand dollars in your savings account.