Saving money by habit (1)

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It’s actually peculiar that while most of us labor for money, only few people put as much effort in saving it. It seems easier to part with a dollar than to earn it. In this series we will take a look at some of the habits that can cut the waste.

Let’s start with the basic principles themselves.

3. Get Profitable – Avoid loss

Put money where there is potential to earn more and avoid unaccounted expenses.

When calculating the amount of money you are putting into your project remember to include all costs even those that do not require your money in that moment. Most people will tell you that you can start certain businesses without money. You may start without money but that doesn’t mean you will start at no cost. Do not discount such a cost, it is worth something.

The fact that you are using resources already available to you does not mean that the resources cost nothing. Imagine how you would feel if you break one of your tools while trying to fix someone’s something for free. Imagine how the “someone” would react if you break their “something” while you are trying to fix it for free.

How would you feel if someone sends you out, on a long journey with a promise to pay all expenses but they just pay for the transport? Would you feel cheated? Are you sometimes cheating yourself in your budgets?

In quick deals consider the long term costs. In budgets, consider hidden  costs. In discounts consider the risks.

2. Get Change Back – Avoid debt

Do not spend more that your earnings. It is difficult to get to a point where you have surplus money unless you make a deliberate effort to reduce your expenditure. if you don’t have the money, don’t spend it otherwise you will end up in debt. If you have money don’t spend it all; what’s spent is exhausted but what’s kept has potential for increase.

1. Feed the piggy – Avoid bankruptcy

The beauty of money is that it can get you anything. That is also it’s treachery, you can lose it to anything. Saving money has to be a commitment. You have to actually put it away. There are many ways of saving money. You have to use the appropriate way otherwise you will lose your saving.

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