Tips on Saving Money: Here's the Lucky Nine

If you've been working long enough and you don’t have any savings in your bank account, you might wonder why your money seems to be disappearing into thin air.

There are a lot of reasons and excuses that people have to explain why they are not saving enough. They’re the breadwinner in the family and they have a lot of dependents to support; their salary is barely enough to meet day-to-day expenses and monthly bills; or the rising cost of living makes it impossible to save. But, I think consumers are to blame, more than anything else.

Blaming a low income for lack of savings is not a valid excuse. 

Financial experts advise that a great way to start down the savings road is to do a complete financial health check. They say this helps you understand where your money is spent, and if necessary, to impose some serious cutbacks.

America Saves, a national campaign coordinated by the nonprofit Consumer Federation of America, offers the following tips for saving money when the budget is tight:

Reduce your expenses

1) Limit the amount of money that flies out of your pockets. Whatever it is that you’re spending on, be it your weekly groceries, morning latte, office lunch or child’s education, there are always little corners to cut. Making small savings here and there can add up to a big amount over time. To get a sense of how much you are spending, write down all your expenses every month.

2) Compare prices for your necessary purchases, especially food, transportation and insurance.

3) Restrain spending during special occasions, such as birthdays, holidays, and Christmas. Go slow on buying presents. “A few well-chosen gifts are likely to be more appreciated than a more costly pile of gifts chosen thoughtlessly in a shopping mall foray.”

Reduce costly debt

4) If you have high-interest loans or credit card debt, find a way to settle them soon. By doing so, you can save hundreds, perhaps thousands, a year.

5) Aim to build an emergency fund and keep it in a savings account. Arrange for your bank to make an automatic transfer each month from your checking or salary transfer account to your savings account. Don’t get discouraged if you’re able to save only a small amount, say, $25 a month. In a year, that will add up to $300.

6) Don’t forget about the loose change lying around your house. Put it in a jar because those seemingly worthless coins can add up to more than $365 a year.

More ways to save

7) Don’t buy things on impulse. If there’s something that catches your attention, keep your hands away from it for at least 24 hours. You might realise later you don’t actually need it, which will you save a few dirhams.

8) Keep an eye out for discounts. Your employer might offer an incentive programme that lets you buy a home appliance, movie tickets or restaurant meals at discounted rates - take advantage of them.

9)  If you have to use cheques, make sure they don’t bounce, otherwise, you’ll pay dearly for charges.

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Forwarded by John Paul