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7 Saving Methods That Really Work For You

7 Saving Methods That Really Work For You

Gone are the days when companies used to include Social Security benefits and pension plans in their employee compensation packages. In the 21st century, neither of these exists any longer. In our lives, we all will ultimately reach a point where we either go for another career opportunity, less intense work life, or finish working for a living altogether.

We always look for the saving methods to help in creating a bright future after your working life ends, or for future use. Embracing money saving method is crucial, and knowing the right steps to take will make the process much easier.

Here are some methods of saving money; by taking some time to look through these options, you’ll be able to save more money faster.

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1. Save a certain percentage of your income

Whether you are working on a monthly budget plan or not, you might start saving right from today. The key is to pick a small percentage of your income and set it aside. Some people who choose to opt for 5 percent or even 10 percent savings from their daily income. On the other hand, some people prefer to set a standard sum each month. This does not matter, as long as you are saving money somewhere.

Many experts suggest to set at least 10 percent of the income each other. This would be an easier technique to start, because by using this saving method you can set amount of money each month.

2. Save a set dollar amount

Unlike saving a percentage of your income monthly, saving a specific dollar amount in a set time period is also a very valuable saving method. This method is used frequently because it works and can easily be automated.  Always try to aim for short-term savings goals, such as setting aside $30 a week or month rather than long term savings goals, such as $200 over a year. People save more successfully when they keep the short-term goal.

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3. Save the change

We used to keep the change in our pockets at the end of the day; we’d toss it at our cupboard or put it in a bowl or in the jar. This method of keeping the change could quickly add up to a few hundred dollars that could then be used on groceries and entertainment. Saving the change can help you with small-scale savings aims, such as a distinct purchase or unplanned expenses.

So in the future, each day when you come home from work, take out any loose change and place it in the jar and empty your pockets before going upstairs to change.

4. Participate in a savings challenge

Sometimes, we just need a pushing challenge to get into the swing of saving. There are plenty of money-saving challenges that are worth to try.

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Here are a few:

  • Saving all of your $1, $5, or $10 bills
  • Saving older bills
  • Saving $1 for each week of the year (e.g,. $1 for week one, $2 for each week or two, and so on. In one year, you’ll have accumulated $1,378.)

5. Buy in bulk whenever possible

When you need to buy non-perishable items, try to buy in bulk whenever there are such items on sale. These items could be your canned goods, cereals, rice, pasta, drinks, toothpaste, body wash, toilet paper, shampoo and other dry goods.

6. Consolidate and pay off debts

If you are in any sort of debt, make an effort to consolidate it on a lower interest rate and paying it off quickly. Money paid in interest for you is like money thrown away! There is no need to spend your hard-earned cash to make the financial institutions rich

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7. Avoid impulse buying

Make it a routine to escape impulse buying. Mostly, many things you buy do not seem all that necessary, and you save a lot if you could only wait for a day or two. Additionally, by waiting you will be able to check the prices and make a well-versed decision to buy it at the best price.

Making saving feel like a task and nobody likes tasks. Conversely, there are easy ways to save without putting any effort.

 

 

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Tayyab Babar

Tayyab is a PR/Marketing consultant. He writes about work, productivity and tech tips at Lifehack.

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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