One of the oldest traditions being followed to make your future safe and secure is by saving. However, this trend is still being followed by most of us and should be continued as even the little savings you make can help you improve your future. However, the little savings does not necessarily mean cutting off all the activities which give you pleasure, for the sake of savings. One should learn to plan in a manner that you enjoy maximum in the present, while preserving for your future as well. We have come up with some easy tips to help you plan your savings.
The 20-30-50 plan!
- § You would get your paycheck, after paying taxes. You should keep 20% of the payment “Paying Yourself First”, which means that at least 20% of your paycheck, after taxes, should go towards your financial priorities including payment of debts, paying student loans, emergency fund creation and most importantly, investing. This 20% should be completely non-negotiable.
- § 30% of your take-home pay should be allotted for fun and other discretionary activities like dining out, watching a movie or buying something to update your wardrobe. One should not keep leisure activities aside in order to save as it is very important to take a break from the hectic life schedules.
- § Lastly, you should ensure that only 50% of your take-home pay should go towards your basic necessities, like housing, groceries, transportation, utilities, and medical care which cannot be ignored and are of utmost importance.
Other saving tips:
Besides all the above measures, you may also save money in your big events. For instance, while shifting your house. Changing accommodations is a common phenomenon where one can make significant savings by following a few tips.
ü Avoid throwing money on buying piggy banks. They are meant to help you save money and the purpose is defeated if you spend a lot of money to buy them. One should find stores where you can get them for a low price.
ü Avoid spending money on other packing delicate material like paper and labels, which can be replaced by newspapers and towels and simple tapes.
ü Book a moving truck in advance by searching for an online offer and you may end up saving up to $20.
ü Rental truck insurance is another thing you should avoid spending upon as you can always ask your insurance agent, rather than spending extra on these rental truck insurances.
ü Try to take help from friends and relatives, rather than spending on moving services which charge you heavily, for shifting.