Our lifestyle now has become so indisciplined that we spend more than we save. Our parents and grandparents were really good at saving money. They made it a priority to save money every month so that they could use it during emergency situations. We also need to make the same habit. Here are the best tips for saving money every month.
Use the traditional method
Just like our grandparents used to do, take a jar and start putting any changes that are left in your pocket at the end of the day. This way you will end up saving some money. When the jar becomes full transfer the money to a savings account.
Pay yourself first
You should reserve an amount every month to pay yourself. When you get your paycheck at the beginning of the month, the first thing you should do is pay yourself. Then you pay your bills and spend money for other purposes. This way you will be able to save money every month.
Make a list of expenses
You should make a list of all the expenditures you make every month. This will give you a picture of where you are overspending. You should find scope to cut your expenses. For example, if you are spending more eating outside, then you can cut that expense down to half and try having dinner at home more often.
Have a monthly budget
You should set up a budget every month and try to stick to it. You should write down your budget for each item separately, like allocate a budget for credit card bills, children’s school fees, etc. You should have a miscellaneous item for emergency expenses. If you stick to your budget every month, you will be able to save money.
It is essential that you save money every month. This way you will be able to have enough money after you retire to spend a good life. You will be out of any financial worries by the time you retire.
Most people with credit cards debts try to pay off the minimum amount due every month. But if you continue to do so, you won’t be able to pull yourself up from the sea of debt. You will be shocked to know that if you have a debt of $15,956, then you will end up paying interest worth $11,000. So, the wise thing would be to pay off more than the minimum amount whenever you get a chance. Here are some smart ways of paying off your credit card debt.
Start with one card
If you have multiple credit cards, then start paying off the total amount of one card first instead of paying little amounts on every card. Choose the card with the highest interest rate first, while making the minimum payments for the rest of the cards. This way, finish paying the debts for each card at a time.
Request for a low interest rate
If you are an old customer of the bank and if you have good credit score then that bank can do you a favor. You can get a low interest rate for your credit card if you request them. This will significantly lower your credit card bills every month.
Many credit cards offer balance transfer with low interest rate. If you have multiple credit cards then you can easily consolidate all these cards and transfer the balance to the new card. This way you have to pay only one bill and at a low interest rate.
The trick is to pay off the credit card bills as quickly as possible in order to pay less interest. You should bring some changes in your lifestyle as well and keep the use of credit card to a minimum.
Buying home is always a good investment. But timing is very important in this case. If you don’t invest at the right time then you may end up losing money. The property industry is in a very good state now and it’s the right time to invest in this market. Here are the major reasons why you should invest now.
Increase in house price
The price of houses is expected to rise in the coming years. So, you will need more down payment and take more amount of mortgage to buy a house. That means that the money you have saved up for buying a house may not be enough.You will need to arrange for more money in order to buy a house.
The interest rate will be high
The mortgage interest rate is quite stable now. But it will increase soon. Now the mortgage rate is only 4%. But it is expected that it will hit 6% within the year 2019 or 2020. So, you will have to pay more interest on your mortgage if you buy a house later.
Inventory is decreasing
Now there are lots of homes available in the market. You can find a suitable home for yourself within a good budget. But it is expected that there will be a 10% drop in the inventory in the coming years. So, it will become difficult for you to find a suitable home in future.
So, if you have money then don’t wait till next year or later to invest in homes. You must invest now as all the conditions are in your favor. You will be a gainer by investing in homes this year.