Best Strategy To Save Money From Salary

how to save money from salary

Money plays a very crucial role in our life, we need it for almost every work. For buying materials and services, to set up a business, to throw a party, to renovate our home, we need money for almost everything. For most of us, this money comes from our salaries and most of it is spent on buying goods and services. But as we all know that, there are some times when you may need money urgently, at those times savings come handy. You might have always wondered of how to save money from salary, there’s no rocket science behind that, it can be done by following these simple steps :

  • Making and Following a Budget — Make a budget, start with your monthly income and determine 10% of it, that’s the amount that you should save each month. Now make a list of your flexible and fixed expenses and cut down the flexible expenses as much as possible, that way you can save some good amount of money. Understand the difference between wants and needs and cut down the wants.

 

  • Reduce your monthly bills — Most of the money earned is gone in paying electricity, water and other bills. To reduce electricity bills, reduce your energy consumption. Switch to energy efficient appliances and turn all electrical appliances off if you are not using them.Turn off the lights, fan. Air conditioners, coolers etc when you leave the room. Don’t waste water, it may cost you a big amount from your pocket and a threat to nature too. Keep your computer at hibernate mode when you’re not using it, this way it will use very less energy. When you buy new appliances, then go with ones that have energy-saving features.

how to save money from salary

  • Curbing your spending — Food is a necessity as well as a problem area for over-spenders. You can save a good amount of money if you prepare most of your meals (including lunch at work, breakfast, dinner and snacks) at home. Buy food and other materials in sales, but don’t buy in bulk, only purchase what you can safely store or consume quickly. These days we spend alot on entertainment, but these costs can be controlled easily and thus its best to cut back on them. Spending time at bars and other venues with your friends can be bad for your pocket, so start planning lower cost get-together’s. A movie night at your house, a casual potluck, going to a public park can be the best low cost get-together’s.

 

  • Earning Extra Income — Selling items that you don’t want or need anymore can earn you some extra income. Go through the old belongings that you have here and there in your house, and consider selling the things you don’t use anymore. When you replace your furnitures, try to sell them rather than throwing them away. Try to put most of your extra income into your savings.

Now when you know how to save money from salary, so go and start doing the savings, you will surely be benefited by them someday.

 

 

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