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How To Save Money Simple rules that will make you financially stable

Don't save what is left after spending, spend what is left after saving. These simple rules on how to save money will make you financially stable.

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Most salaried workers often ponder: How do I set aside money for saving? Should I save whatever is left at the end of the month? Or saving should be deliberate and planned? This often arise when you have competing needs and pressing issues to address. How to save money is not as easy as how to spend money.

Salaried workers are not the guiltiest. Traders, entrepreneurs and businesses owners are often in this quagmire.

Fact is there is always not enough to save. Saving is a habit you must cultivate and let it grow in you. For emphasis, you cannot earn enough to begin contemplating saving X amount.

Strong will and an investment account


To begin with, you must show commitment to saving. You may be abreast with all the tips on how to save money but without a strong will, you will find yourself going to withdraw money you kept for the future. To start saving, have the will and passion. And if possible, have separate bank accounts – one for regular withdrawals and the other for savings up to the time you so wish. Preferably, the second account should be an investment account. This will allow you to earn additional money.

The budget that will make you save money


Draw a budget. I call this the foundation to a very successful financial life. “He who fails to plan, plans to fail,” as it often said. Draw a monthly budget, weekly budget is too stressful and unrealistic. Budget contains all your expenditure. And endeavor to add miscellaneous. It a component of budget we often forget to add. You can fall on miscellaneous when you are caught in impulse buying. I will touch on impulse buying in subsequent paragraphs.  Also, record every expenditure you make for the month. This could form a blue print in drawing up your next budget. It will help you to know whether you are spending too much or within budget. And this could inform other financial decisions you make.

Drawing up a monthly budget is easy, but adhering to budgetary restrictions could be frustrating, especially when you have to dump your impulse buying culture. Spend according to budget as this will help you put some money aside for tomorrow.

Avoid keeping excess money on you. When you have excess money on you, there is the tendency to engage in frivolous spending. Strive to keep what you may need for the week or month and keep the rest in bank. The arrangement is entirely yours.

The quota to save


Save 10 percent of your salary. This is not cast in stone. But it is a conservative figure most financial analysts agree to. Other analysts say you can save up to 20%, and as much as 50 percent, depending on your salary levels, needs and financial commitment.  Remember, how much you save essentially affect your spending plan. If you do not earn a fixed income, develop a quota system to enable you save.

The impulse to buy and how to save money


Another way to save is to avoid impulse buying. Impulse buying is defined as the act of purchasing stuffs without planning for it. This happens to all of us, especially women. Sometimes you come across a product you feel you must have. You don’t want to deny yourself that just because you did not budget for it. Impulse buying can be avoided by going strictly according to budget. If what you want to buy can be taken care of under miscellaneous, why not? Go ahead and purchase it. If not, wait and incorporate it in your next budget. Other effective measures of avoiding is impulse buying is to:

  1. Draw a scale of preference of the things you need when going for shopping.
  2. Deny yourself excess cash when planning to shop
  3. Follow the time rule. Wait a certain time before your purchase a product. One hour, a week or a month.
  4. Don’t go on shopping with friends who are addicted to impulse buying. They may influence your spending patterns.
  5. Buy things you can return. Sometimes when you purchase an item, you turn to question yourself whether you need it or not. If you don’t need it, you can return it.


Take advantage of insurance packages as this will help you avoid unplanned spending in times of need, emergency or circumstances beyond your control. Preferably, take up health, education and motor insurance package. These are fundamentals to human need. We could fall sick at any time, or be involved in an accident we may not have enough money to take care of our bills. In such situations, we can fall on our insurance packages.

Every money counts. Often jokes are made that every COLA [Count of Living Allowance] counts. Avoid wastefulness.

Admittedly, there is a thin line between being wasteful and miserly.  Be moderate in your expenditure. Again, being moderate is relative, however, make sure you do not get into budget overruns. As much as possible, reduce gift giving since it leads to budget overruns. Budget overruns tells you are indiscipline in your expenditure.

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