5 Best Ways On How To Save Money This Month

By Kibet Tobias
After many times of making job applications, you finally landed on an entry level or well-paying job. Now financial challenges come in plenty; every month there’s nothing to be happy about. All your money disappears. You wonder where they `go’.
Some even accusing witchcraft & curses. Whatever they can be – but have you taken a minute to think about it? Your spending habit is killing your finances.
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Here is a practical guide on how to save your money this month;
1. Have a spending plan
The very best method to saving money is to create a Spending Plan or a Budget. With a budget you figure out what your income is and what your expenses are.
Once you know these two things, you can look for ways to reduce your expenses or increase your income to allocate an amount of money that you can afford to save.
This is how the world’s largest corporations do it and this is how most of the world’s successful business people do it. This method takes a little bit of work at the beginning and a check-up every year or two, but it works.
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Once you begin to plan your spending, you will gain control over it and you will be able to plan to spend money on your savings. In other words, you will plan to put money into your savings account.
2. Review your debt payments
Take a look at the interest rates on any debt payments you may have. Regardless of how low your interest rate on credit cards, mortgage or a loan, if you look around and see what other companies are offering for the same product you may find that you can do better.
If you’re paying 5% interest on your line of credit, you may be able to show your bank that others are paying 3.5% and get them to do the same for you.
If you’re paying 20% interest on a credit card, see if your credit card company has a lower interest rate card. You may be able to get them to move you to a 12% card, or you may be able to find an even better rate somewhere else.
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If you have a mortgage, have a chat with a mortgage broker and make sure you’re getting the best rate possible.
3. Don’t keep your money under the mattress
I hope that you don’t try this. Every thief knows that this is the first place to look. Even your roommate knows it very well.
Your money under the mattress isn’t insured in case of calamity. Remember it also earns no interest. Smart savers keep their money in the bank.
You could be robbed, or there could be a flood, a fire, or a pest infestation that snacks on your dollars.
Your toddler could find it and use it for art projects, your son/daughter could siphon it for Friday night expenses, or someone working in your home could find it just too tempting to leave alone. Smart savers keep their money in the bank.
4. Plan how much to save each day/week
Committing to saving a regular sum each month or week is more effective than simply saying you’ll save whatever you have left over, which might be nothing. Be realistic.
It’s better to commit to a manageable amount than to aim too high and give up. Not sure how much you can afford to save? Start small.
5. Carry a packed lunch to workplace
Bring food to the office with you may seem a hard task but it saves you a lot of money. Eating out is without a doubt an expensive affair.
The fact that most of the food we buy on a daily basis is over Kshs 100 for a proper meal means you end up spending more than Kshs 500 every week – and that’s on lunch alone.