Everything for everyone....: 7/1/12

I need this very urgently and need to remind myself constantly : How to Save Money and steps by steps to follow through...

One trick from my sister : Recently I have been checking some saving account bank interest rate.. one of the best bank interest rate that can offer me is Maybank .. try open one of the bank with no atm facilities if possible another option is keep the atm card somewhere where you cannot use it (I am going to keep with my sister :) ). Make a repeated transfer every month on the payday, force ensure to save. I realise it is in one of the steps below

I have an excel worksheet that I do myself which can be useful... do email me if you like

Saving money is one of those tasks that's so much easier said than done. I am getting some steps down to help myself to start..
With no saving at the age of 36, it is very worrying.

I have lift off some of the information from the web hope it is helpful.

Steps to follow .. all the best

1 Kill your debt first. Simply calculating how much you spend each month on your debts will illustrate that eliminating debt is the fastest way to free up money. Once the money is freed from debt payment, it can easily be re-purposed to savings. Plus, the sooner you pay off debt, the less interest you'll pay, and that money can be saved instead.
2 Set savings goals. For short-term goals, this is easy. ( i did with $500 put aside monthly)
3. Establish a time-frame. Set a particular date for accomplishing shorter-term goals, and make sure the goal is attainable within that time period. If it’s not attainable, you’ll just get discouraged.

4 Set a target amount that can be attainable at a shorter time frame..
Plan on how much you’ll have to save per month to attain each of your savings goals. Take each thing you want to save for and figure out how much you need to start saving now. For most savings goals, it’s best to save the same amount each period.
5
Keep a record of your expenses best to be done daily . What you save falls between two activities and their difference: how much you make and how much you spend. Since you have more control over how much you spend, it's wise to take a critical look at your expenses. Write down everything you spend your money on for a couple weeks or a month. Be as detailed as possible, and try not to leave out small purchases. Assign each purchase or expenditure a category such as: Rent, Car insurance, Car payments, Phone Bill, Cable Bill, Utilities, Gas, Food, Entertainment, etc.
- Keep a small notebook with you at all times. Get in the habit of recording every expense and saving the receipts.
- Sit down once a week with your small notebook and receipts. Record your expenses in a larger notebook or a spreadsheet program.
- There are also many apps you can download to your phone that will help you keep track of your expenses.
6
Trim your expenses. Take a good, hard look at your spending records after a month or two have passed. You’ll probably be surprised when you look back at your record of expenses: $30 on ice cream, $10 on parking tickets? You’ll likely see some obvious cuts you can make. Depending on how much you need to save, however, you may need to make some difficult decisions. Think about your priorities, and make cuts you can live with. Calculate how much those cuts will save you per year, and you'll be much more motivated to pinch pennies.
- Can you move to a less expensive apartment or house? Can you refinance your mortgage?
- Can you save money on food, or give up some inhouse restuarant dining altogether?
- Shop the discount racks at clothing stores or best dont shop at all . Items on clearance are marked down considerably and could save you 50% -70%of the price.
- Can you drop a land line and either only use your cell phone or save money by calling over the internet for free with services such as Skype?
- Can you cut down on your utility bills?
- Can you restrict eating out? Buy food in bulk? Cook more at home? You might be able to save a lot of money when grocery shopping.
7
Reassess your savings goals. Subtract your expenses (the ones you can't live without) from your take-home income (i.e. after taxes have been taken out). What is the difference? And does it match up with your savings goals? Let's say you've decided you can definitely get by on $150 per month, and your paychecks amount to $230 per month. That leaves you with $80 to save. If there’s absolutely no way you can fit all your savings goals into your budget, take a look at what you’re saving for and cut the less important things or adjust the time-frame. Maybe you need to put off buying a new car for another year, or maybe you don’t really need a big-screen TV that badly.
8
Make a budget. Once you’ve managed to balance your earnings with your savings goals and spending, write down a budget so you’ll know each month or each paycheck how much you can spend on any given thing or category of things. This is especially important for expenses which tend to fluctuate, or which you know you're going to have a particularly hard time restricting. (E.g. "I will only spend $30 a month on movies/chocolate/coffee/etc.")
9 (this is one of my main weakness)
Stop using credit cards. Pay for everything with cash . Don't even use cheque (I only use cheque for payment like my kid tution fees etc something to track ) . It's easier to overspend when you're pulling from a bank or credit account because you don't know exactly how much is in there. If you have cash, you can see your supply running low.
Interesting to follow thru ** : You can even bundle up the predetermined amount of cash allocated for each expense with a label or keep separate jars for each expense (e.g. a bundle/jar for coffee, another for gas, another for miscellaneous). As you pull money from a jar for that particular expense, you'll see how much remains and you'll also be reminded of your limit. This is a good one that I can start using. I probably should have a few jars

Food / restaurant
Grocery
Transport
Miscelleaneous
kids

If you need to have credit cards but you don't want the temptation of having them available to use day-to-day, restrict that section of your wallet with a note or picture reminding you of your savings goals.
Use Credit cards wisely, it's all about your self control. If you use them responsibly (i.e. completely pay them off every month), you can benefit from them. But the reason most credit card companies make money, however, is because people end up spending money that they don't have. Unless you are one of the people who can religiously pay off the balance in full every month, you're better off foregoing the promotions that credit card companies use to lure you in (cash back, introductory APR, airline miles, and so on).
But I have an issue also, i tend to limit out my monthly expenses, so without self control.. even if I pay off monthly i dont have any amount left to save.
Ultimate - dont use credit card, dont bring it out if you cannot control.
once the habit is break- then you can start by giving yourself a limit.

10 Open a savings account with limited access or difficulties to access. It’s a lot easier to keep track of your savings if you have them separate from your spending money. ( my sister tricks)
11Pay yourself first. Savings should be your priority, so don’t just say that you’ll save whatever is left over at the end of the month. Deposit savings into an account (or your piggy-bank) as soon as you get paid. An easy, effective way to start saving is to simply deposit 10% of every check in a savings account. If you get a check or sum of cash, say 710.68, move the decimal point one place to the left and deposit that amount: 71.07. This works well and requires little thought; over several years, you've a tidy sum in savings.
- You can set up an automatic transfer from your checking account to your savings account.
- Many employers allow you to deduct savings from your paycheck. The money is directly deposited in your savings account so you never even see it on your paycheck.
- You can also have investments for retirement taken directly out of your pay, and the taxes may be deferred with this option. Your employer may offer a 401k matching program for retirement as well making it even more worthwhile to save.

Don't get discouraged and don't give up. You may not think you can become wealthy but to become a millionaire is possible if you set up a aggressive savings plan and stick to it. You may be surprised how much money you can put away for something far more enjoyable than what you could buy with short term savings. Good things often take time and the longer you save the more interest you will be making on your savings as well!

Tips from website

Every time you go to buy something think of the thing you are saving for and the rough percentage of your savings so far that the thing costs and quite often you won't buy it.
Always over-estimate your expenses and under-estimate your income.
If you can afford to share things you have, from food to living space to appliances, try to do so. What goes around comes around when it's between close friends, soon enough, you'll find your friends doing the same, and everybody benefits.
Take care of your possessions. In this way, you'll need to replace items less. Also, don't replace items until it's absolutely necessary. For instance, just because a motor in an electric toothbrush breaks doesn't mean it stops functioning as a toothbrush. Continue to use it, and when ready go buy a new one or check the warranty.
Have a hobby? Match your funds. One important habit for saving is if you have a hobby, such as model airplanes, scrap-booking, dirt biking, scuba diving, etc., set a hard and fast rule that whatever you allow yourself to spend on your hobby, you match those funds to your savings. For example, if you buy yourself a $45 pair of riding gloves, another $45 goes to your savings. Serious about saving? Try doubling your matched funds! These savings plans will do two things: Save money regularly and quickly, and really show you how much you are spending on your hobby, when it costs you twice as much.
If you receive unexpected cash, put all or most of it into your savings, but continue to set aside your regularly scheduled amount as well. You’ll reach your savings goals sooner.
Make purchases with paper money, not exact change, and always save the change. Use a piggy bank or jar for your coins. Coins and change may look insignificant but when accumulated over time they can help you save. Some banks now offer free coin counting machines. When you redeem your coins, ask to be paid by check so you won't be tempted to spend your new found cash.
Most people can save something regardless of their income. Starting to save a little will help build the habit of saving. Even saving as little as $5 a month will teach you that you don't need as much money as you think.
If you can't bring yourself to destroy all your credit cards, at least freeze them. Put them in a container, fill it with water, and stick it in a freezer. That way, if you feel the urge to use credit, you have to wait until the ice melts, and during that time you may come to your senses and realize you don't really need to buy what you wanted to buy.
If you get paid about the same amount on a regular basis, it'll get easier to budget your money over time. If you have a variable income, it'll be harder to anticipate your expenses because you won't know when's the next time you'll get paid. List your budget categories in order of importance and fulfill the most important items first. Play it safe; assume it'll be a while before you get money again.
Use affirmations. For example, repeat this affirmation to yourself until it sinks in: Debt is not an option.
Enjoy the simple pleasures in life. During the Great Depression, people still had fun, just not lavishly expensive fun. Children had soapbox derbies, teenagers had dance contests, and everyone played Monopoly, did puzzles, read, and listened to the radio. Get together to discuss philosophy or pray; play poker or make crazy quilt pillows; play instruments and dance. In those days, it took some imagination and ingenuity, but they had a lot of fun without hanging out at the mall, and you can too. Many of the friendships and alliances formed during the Great Depression on the basis of such activities stood the test of time.
Try to find at least one penny on the ground everyday. Put the money you find in a jar and see how fast it adds up!
Even if you REALLY want something, ask yourself, do you REALLY need this? More than half of the time it will be a big no.

Warnings

If you have spendthrifts in your circle of friends, you may need to formulate a list of ready excuses to explain why you can’t go out with them all the time.
Do not go out "window shopping" with any money on you. You will only be tempted to spend money you cannot afford to lose. Only shop with a predetermined shopping list.
After a long week of working, you may want to indulge in some luxury, telling yourself, "I deserve this". Remember that the things you buy are not gifts to yourself; they are trades, products for money. Say, "Of course I deserve this, but can I afford it? If I can't afford it, I'm still a worthy person, and I still deserve to meet my savings goals!"
Unless you're in truly desperate financial straits (like 10 seconds from eviction and your three children are starving) don't try to cut corners connected to health. Basic preventative care for yourself, your family, and your pets might cost you a $60 office visit or a $30 heart-worm pill today, but the skipping it will contribute to expensive problems and heartache down the road.
If you do mess up don't beat yourself up about it. Just try to do better the next time you get paid.

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7/19/12

How to Save Money and steps by steps to follow through...