Everyone has money problems from time to time. It could stem from emergency situations, financial miscalculation, or even an unforeseen event. As people’s spending habits continue to change, the niche of ‘saving money’ is also becoming more popular. If you want to save money now, it’s important to know that there are new strategies that you can apply. Penny-pinching will only work as a surface solution, and not for the long-term.
If you’ve tried penny-pinching in the past and you’re still having financial mishaps, then something is probably wrong with your money management tactic. Expense assessment is a real solution and a process that lets you adjust your budget. In this process, you get to see where you are spending too much on. Is such expense necessary or you can cut it down? How much can you save if you cut on that expense? You may need to do expense assessment every month to prepare for any adjustment.
Forecasting is the ability to see beyond the present and predict any event that may occur. This is not a mystical skill, but rather a pattern-dependent capability. By forecasting, you can take account of your financial habits and future obligations. This is even useful if you have several loans from money lender Singapore to pay. Forecasting is not 100% accurate but can help you save money in the long run.
The 10% Formula
The 10% formula has been used by thousands of people worldwide, but only few can really get the hang of it. The habit goes like this: you need to put away 10% of your total income per month. Put it in a separate bank account that you cannot easily access. Over time, as your income multiplies, you can increase the percentage of money being saved. Do this for a year and you’ll have a lump sum that you can use for many things.
Compounding is the real key to saving; if your expenses are growing, then your efforts to save should match that growth. It can also help if you also increase your sources of income. Remember, saving is a mix of persistence, dedication, willpower, and the discipline.