Saving money is easy
if you do it habitually.

How to start saving money? Break the ice. Start a small portion then it will turn big. Introduce the system for yourself by slashing a portion of the income for savings.

Whether you are employed, self-employed or have a business, do it as a habit to allot a portion for savings. Save first before anything else when you receive the income.

Do it as a habit and be committed to saving religiously. Find a system wherein as payday comes, a portion will be deducted automatically from the savings. By doing such, you now start the journey to financial freedom.

Do not be anxious in the beginning because you might be seeing at your balance and it looks small. Eventually, the savings will turn big. Forget about the money allocated for savings. Just concentrate on saving. If you need money for something, find ways to buy the particular thing. Never sacrifice the savings for the wants.

The reason why we want to pull out some money is to satisfy our wants. Wants can wait or maybe if you really need it then find a cheaper version. But, avoid in loaning for the wants. We might end-up into debt.

It is acceptable to borrow money to earn from it. We call that leverage. For example, we saw an opportunity of acquiring a car worth 10,000 but the market value is at 20,000. Then loaning an amount of 10,000 is acceptable.

Let us say that the interest in loaning the 10,000 is 2,000. We have 12,000 in debt but we will sell the car at 20,000. Therefore, we earned 8,000. Loaning or borrowing money to earn from it is acceptable.

We want to avoid loaning because of the interest. Going back to our example, the interest is 2,000 and if we don’t pay it on time, there is a possibility of paying another 2,000 in the succeeding months. It continues to grow as long as you do not pay for it.

Now a day, people tend to borrow or swipe their credit card for the latest gadgets. It is all psychological. Are we buying the latest stuff because we really need it or for showing-off?

When you go to work and have the latest gadget, people around you will be amaze and somehow will be envious. They might be talking that you are cool because of the latest gadget. It may feel good because you are in the latest trend. But, does it add something to your saving?

Remember, a gadget depreciates and may cost some money to maintain it. We need patience and perseverance in saving money. If you really need to spend, think twice and perhaps there is a cheaper version.

Return from Saving Money to Money Management Guide.