Saving money is one of those tasks that is easier said than done. How much money will you save, how will you do it, and how can you make sure it stays there? Here are five questions to ask yourself to help you get financially fit and achieve monetary success.
What are your financial goals?
Understanding why you want to save money is a fantastic way to start. With your vision in mind it will be easier to make those tradeoffs at the till. (Is that extra pair of shoes really worth it?) Create milestones to make the path look easier and track your progress regularly to know if you need to make any adjustments to get to your goal.
Where`s your money going?
Many of us have no idea where we spend our money. In fact, as long as there is enough in the bank to cover the expenses we`re fine. Unfortunately, that`s not a great way to ensure you are making the most of your wages.
Understanding where you spend is a key step in financial fitness as it helps you determine the percentage of your money that is being spent on necessities and how much is being spent on the non-essentials.
Once you know where your money is going, you can start thinking about what changes you need to make in order to get to your desired financial state.
How much can you spend and where?
Budget. There are few words that are less exciting to hear.
We all know how difficult it is to create a budget and it`s often even harder to stick to it. But now that you know what you are saving for and you know where your money goes, it will be easier to set a budget that works for your lifestyle.
Create a list of things you are likely to spend on each month and make sure to track each rupee you spend. Give it a shot for three to four months and before you know it, you`re on your way.
Are you sticking to the plan?
Tracking your expenses is a key factor in making your budget work. Keep a tab on how much you are spending across each of your budget categories and see which ones you are overspending in.
What are your financial goals?
Understanding why you want to save money is a fantastic way to start. With your vision in mind it will be easier to make those tradeoffs at the till. (Is that extra pair of shoes really worth it?) Create milestones to make the path look easier and track your progress regularly to know if you need to make any adjustments to get to your goal.
Where`s your money going?
Many of us have no idea where we spend our money. In fact, as long as there is enough in the bank to cover the expenses we`re fine. Unfortunately, that`s not a great way to ensure you are making the most of your wages.
Understanding where you spend is a key step in financial fitness as it helps you determine the percentage of your money that is being spent on necessities and how much is being spent on the non-essentials.
Once you know where your money is going, you can start thinking about what changes you need to make in order to get to your desired financial state.
How much can you spend and where?
Budget. There are few words that are less exciting to hear.
We all know how difficult it is to create a budget and it`s often even harder to stick to it. But now that you know what you are saving for and you know where your money goes, it will be easier to set a budget that works for your lifestyle.
Create a list of things you are likely to spend on each month and make sure to track each rupee you spend. Give it a shot for three to four months and before you know it, you`re on your way.
Are you sticking to the plan?
Tracking your expenses is a key factor in making your budget work. Keep a tab on how much you are spending across each of your budget categories and see which ones you are overspending in.
Understand why you are overspending and make adjustments accordingly. Revisit your expenses often to be sure you are on track and don`t forget to focus on the goal.
Are you rewarding yourself?
It`s not an easy path towards financial fitness. It requires a lot of discipline and rigor. Don`t forget to reward strong performance. Every milestone you reach means a small success, so treat yourself along the way (within budget, of course!).
This will help you keep your motivation levels up and makes the exercise a little more fun.
We hope that these simple tips do help you in your march towards financial fitness.
Are you rewarding yourself?
It`s not an easy path towards financial fitness. It requires a lot of discipline and rigor. Don`t forget to reward strong performance. Every milestone you reach means a small success, so treat yourself along the way (within budget, of course!).
This will help you keep your motivation levels up and makes the exercise a little more fun.
We hope that these simple tips do help you in your march towards financial fitness.
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