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5 Simple and Effective Strategies for Saving Money

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Many individuals around the world struggle to save money, especially with the soaring cost of living. Sometimes, the hardest thing when it comes to saving money is to get started. The habit of spending has sunk so deep in people that they need to train their minds to save more. 

The good news is that it can be done, no matter how hard it seems. At the Iron Kingdom, we have some simple, realistic, and effective strategies to help you have more savings. Let’s walk you through some of them:

1. Write down your expenses

In order to save, you need to know how much you really spend. So, the first step would be to figure out your total expenditure. Keep recording all of your expenses, even if it means writing down the amount spent on small things. Examples of these would be coffee or a snack. 

Once you have all the spending recorded, organize them into categories. Finally, make a total of each of these categories. You can verify the total spending by referring to your bank and credit card statements. These days, you also have apps to simplify this task.

2. Make a budget for your savings

Now that you’ve recorded your expenses, you can organize them into a budget. Besides, you can determine how much you need to spend and how much you can save. While doing so, you must take your current income into consideration. By budgeting for your savings, you can limit your overspending habits. Try to save at least 10 to 15% of your income.

3. Find some ways to avoid spending

If your expenses are so high that you’re unable to save much, it’s time to cut some spending. Identify the things that are not essential for you. This might include eating out and entertainment. For reducing spending on entertainment, you can go to free community events instead. You can cancel your subscriptions and memberships that you’re either not using or using rarely. 

Try eating out by going to places that are cheaper. If you’re feeling tempted by a non-essential purchase, postpone it for a few days and don’t set reminders for it. You’ll either forget about it or save a certain amount for the purchase.

4. Set your goals for saving

One of the best ways to save money is to set your personal saving goals. You can begin by thinking about what’s that thing you want to save for. It might be your marriage, a vacation, or your retirement. Then try figuring out how much you’ll need and the time you’ll need to accumulate the amount in savings. 

Consider opening an investment account if you’re saving for your retirement or your child’s education. Always consider investments that are either risk-free or less risky.

5. Choose the right options for savings

If your goal is to save for the short term, consider putting your money in a savings account. You can also go for a Certificate of Deposit (CD). A CD locks in your amount for a certain period of time. It fetches you a higher rate of return than savings accounts. If you’re saving for your long-term goals, consider investing in an individual retirement account (IRA). 

These are tax-efficient savings accounts. Another great option would be to invest in securities. They include mutual funds or stocks. You must keep in mind that they’re subject to market risks.