The Golden Rules of Saving Money

When it comes to saving money, the Golden Law of savings still rule supreme: you should tuck away at least six months’ worth of living expenses in your savings account. The reality, however, is that only very few people do this. And of course this attitude always put them into trouble whenever the proverbial rainy day comes. The bottom line here is that, you need to be serious about saving money because the rainy day will surely come. Here are a few tips to get you started.

Make A Budget

If you are serious about saving money, the first step to take is to set a budget and stick to it. To set a budget, you should choose a specific goal, which may be, to spend(say) only $20 on fruits and drinks in a month. Note that budget can work for you only if you are serious about it. You can’t act like a 10^thgrader who blew off doing his English homework. No excuses. In a spending mood? You stick to your budget. Going to a club tonight?  You stick to your budget. Only by doing this will budgeting work for you.

Be Cash Friendly

It is better to make cash payments for all your purchases. Generally speaking, you will spend less and make fewer unplanned purchases if you count out bills instead of paying with credit cards or debit cards.

Beware of Memberships and Subscriptions

It may be cheaper for you to pay as you go and cancel subscriptions and memberships for things like magazines, newspapers, books, DVDs,  and so on. In most  cases, you can read  these  magazines, newspapers, and so on at your local library.  

Redeem Reward Points

Check your credit card statements to see if they offer reward points as well as how many of them that you have. You can then check the websites of the companies that offers the reward points to find out if it is possible to convert them into gift cards or cash.

Look for Special Offers

Before you make a purchase from a major retailer such as Wal-Mart, Home Depot, J.C. Penny and Staples, check out their websites for deals. You will save a lot of money by doing so because many of them often offer as much 30% off the prices of  some of their  products.

Selling Stuff

If you go down to your basement, you will discover that there are many things you do not need in your house. Hold a yard sale or auction off every items you don’t need on eBay.

Save Every Windfall

Sometimes, you may receive extra cash in the form of bonus, birthday gifts, proceeds from your yard sale or tax return. When this happens, do not indulge in a splurge. It is better to save the windfall in your bank account.

Avoid Temptation

Temptation may come to you in different forms. For instance, many retailers can send special offers to you through email. It is better to click on the “unsubscribe” link at the bottom of such emails if you are the sort of shopper  that is easily tempted to overspend on an impulse. By clicking on the “unsubscribe” link, you will no longer receive such emails.