Date Posted: 11/26/2012 4:37:30 AM
Posted By: fly1234 Membership Level: Bronze Total Points: 15
Indeed it's a daunting task to save money. Everybody knows that it's something that is supposed to be done, but it seems to take too much effort that sometimes we feel it's is not worth it at all. I heard that you can 'trick' yourself into saving without necessarily making adjustments to your budget. So i asked myself how,because i just didn't see how that would be possible. I was told it's a matter of identifying the monetary waste that each household has and converting it into your savings, rather than just letting it slip away. The following are suggestions that one can incorporate into their budget plan to realize huge savings without noticing it.The car you bought on hire purchaseMost people buy items on hire purchase, including cars. When the car is paid off, simply keep paying the amount of your car payment into a savings account. You won't notice the change because by this time, your budget is so used to financing the car and since you have eliminated the loan, you can go ahead and save the same amount into your account. Isn't that awesome?Try to use cash whenever possible. Have a piggy bank put somewhere to keep all coins you get back as change. Then, when the container is full, take it to a Coinstar machine or even roll it yourself when you have a free evening so that you don't have to go into your bank account to get some cash for entertainment. And you can add this money to your savings account. When you use this method of building a little extra cash, you'll be amazed at just how your savings are increasing. Personally, i hate swiping credit card plastics to purchase items because they are perceived as one way of encouraging extravagant spending.Direct deposit into your accountIf you are employed, your boss may deposit your paychecks directly into your bank account. You can arrange with your employer to slip a portion of your money to go into a savings account, just as your retirement and benefits can be deducted. One advantage of this method is that you never see it, so it is not available to spend.When you get your salary, make payments as soon as possibleI would rather pay all my bills at once instead of waiting until they are due. This method allows that chunk on my loan to get deducted immediately and i remain with what is truly available to me. If you go the automatic withdrawal way, it still works. Have the amount deducted from your finances immediately, and then you won't spend the money, meaning it will be available for withdrawal later.Use your utility bills to save moneyThanks to the newly installed Kenya Power Meters, they encourage savings. If you always buy units worth Ksh 500 per month, allocate Ksh 600 into your electricity budget so that the extra Ksh 100 can go into the savings account. Psychologically, you will assume that you always pay Ksh 600 for what you consume. This way, your savings can grow without you realizing.
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