7 Tips to Help You Manage Your Income and Start Saving Money

If you’ve always struggled with saving money for various reasons, it’s time to make that change today. Whether you agree or not, you must admit that being financially stable is highly important for anyone. You don’t want to be without a savings account to turn to in case of emergencies. Here are some helpful tips that can help you out with your budget. You do have wealth; you just need to know how to manage your income.

  1. Do not buy anything you don’t need – In order for you to start saving money; you have to forget the shopaholic in you. Even in the grocery, don’t put anything in your cart that you do not really need. While you can reward yourself every once in a while, as much as possible, don’t spend too much on things you’d probably ignore after a couple of days after you purchased it.
  1. Use your credit card for emergencies only – While many would suggest for you to pay for your purchases with a card rather than cash, this allows you to spend more than expected. To manage your budget, bring enough cash with you for the day and unless it’s a life and death situation, do not use your card.
  1. Get a passbook savings account – When you have ATM cards that tempts you to withdraw from anytime, you tend to spend even when you don’t have to. Only keep one card that you can get cash from in case of emergency.
  1. Set aside specific amounts for your monthly expenses – Once you receive your paycheck, divide your income according to your expenses. Be strict about staying within your budget. The percentage of savings really depends on your income but here’s a rough example of how you can divide your paycheck:
  • Rent/mortgage, Groceries, Bills, Gas Money – 50%
  • Savings account 1 – 20%
  • Savings account 2 – 10%
  • Savings account 3 – 10%
  • Self-reward – 10%
  1. Have various savings accounts and deposit a few dollars monthly on these accounts – If you’re saving money for a car or a new laptop put this in a different savings account. Another bank account should be used for other needs, such as travel funds, unexpected car repairs, hospitalizations, home maintenance, etc. As seen on the budget example above, the 20% should go to your life savings account that you shouldn’t touch until you no longer have a choice.
  1. Find coupons you can use or go onto online deal sites that can help you purchase things while still saving money. You should still remember though that as much as coupons can be attractive, if you don’t need it, don’t buy it.
  1. Invest in residual income opportunities. Depending on your expertise or your interest, there are many ways you can earn passive income. You can even check your bank’s best interest rates for your savings accounts and the interests earned can be your residual income.