Every one of us, regardless of ethnicity, loves money. Although Money is not the only measure of success in life, most people in our modern-capitalism world, it is the first thing, and it COULD be the only thing that measures success in people’s lives. Money can buy power, fame, time, and even a life. So often money has become the first common goal for everyone, yet, most of us are struggling to accumulate wealth.
How can we reach our goal? It is simple. SAVE and INVEST! But it is clearly not as easy as it seems. It is often hard to resist to eat out, buy things we are attracted to, and not spend money. Saving money is one of those self-promises that’s so much easier said than actually getting it done. There’s more to it than cutting the consumption and spending less money. How much money will you save, where will you save it, and how can you make sure not to spend a penny out of it? I read an article(link to the article provided at the bottom of the page) about saving money and brainstormed to come up with my own list. Here’s how to set realistic goals, keep your spending in check, and get the most for your money.
1. Getting rid of debt should be the priority!
– A lot of college students graduate with school loans and when you calculate how much you spend each month on your debts will illustrate that eliminating debt is the fastest way to free up money. The sooner you pay off debt, the less interest you’ll pay, and that money can be saved instead.
2. Keep a record of your expenses!
– My mother always emphasizes about the importance of booking. It is wise to take a critical look at your expenses. Write down everything you spend your money on for a couple of weeks or a month. Be as detailed as possible!
3. Don’t use credit cards!
– Credit cards are not inherently evil; or intended to trap people into debt. It’s all about our self-control and moderation. If we use them responsibly (i.e. completely pay them off every month), we can benefit from them. But the reason most credit card companies are pretty successful, however, is because people end up spending money that they can’t afford. We should try to make consumptions by cash and debit cards. Knowing how much we can afford will prevent us from crossing the limit!
4. Set savings goals!
-For short-term goals, this is easy. If we want to purchase a new Macbook, find out how much it costs; if we want to purchase a vehicle, determine how much of a down payment you’ll need. For long-term goals, such as retirement, we’ll need to do a lot more planning and we’ll also need to figure out how investment will help us to achieve our goals.
5. Change to store brands!
-According to consumer reports, it frequently finds that for many products, store brands were at least as good as name brands, while being considerably cheaper. Investigate store brands for items you buy regularly.
There are definitely more magnificent ways to save money but I mentioned only a couple of which I thought were the most important and effective. I sometimes become very demotivated and lose confidence because I am afraid I may not become wealthy as Donald Trump or celebrities like 50 cent and slim thug but I am keeping my faith to become a millionaire. I believe it is possible if I set up an aggressive savings plan and stick to it. Good things often take time and the longer you save the more interest we will be making on our savings.
Give me the keys to the Rolls Royce!