SIMPLE TIPS ON SAVING.

Employing some simple tips on your finances can often make a huge difference in your savings effort. While saving means giving something that you want now a pass, it will reward you greatly in the future. What you need is a consistent long term savings program which can help you in achieving your missions. Savings comes in very handy in times of emergency and uncertainty. No one can predict when they will lose their supposedly secure job or the next economic downturn. Financial experts agree that you should set aside between three to six months of expenses for unexpected events and needs.

Money invested in savings will grow beyond what you put in, due to compound interest. In short, it means that over time, your money will grow more than what you put in initially. However, it is very important to note that inflation can reduce the return on your money.

No doubt, eliminating or even postponing your purchase needs a lot of discipline. However, practice makes perfect. So we include here some helpful tips to get you off the ground.

PAY YOURSELF!
We hear this often. Pay yourself first before anything else. But most people are just not doing it. It is recommended that you have a standing instruction with your bank so that whenever your salary is deposited into your account, a portion is directly transferred to another account. The principle is easy, what you don’t see, you don’t spend!

SAVE IT!
When your next job raise comes, save it! If you’ve been raised 15%, then save all that 15%. This can be done by maintaining your current lifestyle and not indulge in luxury you can’t afford. The same goes for bonus payment. When you get a month bonus or two months bonus, save all of it or at least most of it.

PAY YOUR CREDIT CARD!
Ok, so an entire article can be dedicated to paying off credit card debt. But here, I want to stress the utmost importance of paying off your credit card debt first. By paying off your credit card, you will save an enormous amount in INTEREST! Remember, the interest rate for credit card in Malaysia is at 18% per annum. Just so that you realize how high that is, a fixed deposit only give returns of an average 3% per annum. Think about it.

TRANSFER TO LOWER INTEREST RATE!
This is very important for those of you having a huge credit card debt. There are many banks offering balance transfer. You just need to shop around and determine what works best for you. Transferring to a card with a lower interest rate can help to shorten the time of repayment provided that you keep your discipline. It will also save you a lot of money in the long run.

KEEP YOUR CAR!
Thinking of getting a new car? Who wouldn't be tempted to? With our higher earning power and more affordable cars around it really is a temptation. However, I would urge you to keep your current car…or at least for a year or two longer. Whenever getting a new car, people would usually upgrade to a better and more expensive car. So by keeping your car longer for a couple of years, it would save you a lot of money.

QUIT SMOKING & DRINKING!
With the government increasing cigarette and liquor tax every year, you can only imagine how expensive this ‘hobby’ of smoking and drinking can be. Plus, it will do your body good if you quit this bad habit. If you can’t stop entirely, do cut down on the quantity. You will live a healthier life and your bank account will be healthier too.

STEAL FROM YOURSELF!
Take RM 3 from your wallet everyday and put it somewhere safe and out of reach. Do the math and you would have RM 1095 in a year. Just don’t get into the habit of stealing from someone else.

WRITE A SHOPPING LIST!
Whenever you go shopping, make sure you shop with your list and STICK to it. This will keep you from impulse buying that you will regret on later.

EAT IN!
Everybody knows it’s cheaper to prepare and cook your own meals than eating out.
SOURCE FOR AFFORDABLE ENTERTAINMENT! This could be visits to museums or parks. Go for walks or jogs. What about borrowing a good book from the library? You could also go for movies during movie night.

STOP YOUR SUBSCRIPTIONS!
Don’t we all subscribe to something that we don’t really need? What about that subscription to the entertainment magazine? Or do we really need pay TV when we’re out at work most of the time?

GET CHEAPER INSURANCE!
This is especially true for young single working adults. You have so many choices to choose from. Start with a cheaper insurance and you can add on to it once you start your own family.

SAVE YOUR TAX REFUND!
For those of you who are paying tax I only have one thing to say : SAVE YOUR TAX REFUND!

POSTPONE YOUR PURCHASES!
Often, the act of postponing your purchases will kill off your desire of purchasing it at all later on. But there are days when you just feel that you have to purchase something. If that happens, consider on fewer features on your items of choice.

PAY CASH!
If you can’t clear your credit card balance on time, use cash for your expenses.
SAVE, SAVE, SAVE! Finally, remember that the more you save, the more and faster your savings will grow.

Article from http://www.ringgitandyou.com