Money Saving Advice

Money Saving Advice – Top Ten Do’s and Don’ts

THE DO’s

1. Do make yourself a budget. Include everything that you are paying for and any money which is coming in. Write down everything you spend money on for one week. You’ll be surprised how it all adds up.
2. Do pay yourself a “wage”. Put aside a section of your budget for your own spending – it doesn’t have to be a lot of money just enough for small impulse purchases, for example a magazine or chocolate bar.
3. Do prepare a shopping list and stick to it – not just for food shopping but for events such as Christmas and birthdays.
4. Do buy with cash and save up for bigger items. Once you have established your budget ensure you maintain it and use your new knowledge. Accept what you can and cannot afford and take responsibility for your spending habits.
5. Do plan ahead for big events. It’s the big purchases that are forgotten about in traditional budgets. Ensure you write down any big purchases you will have to make in the coming months – for example a new car.
6. Do save for the rainy day.

THE DON’T’s

1. Don’t forget that there is little sense in having both savings and certain debts. The interest you are earning on one is easily outweighed by the three-fold interest you are paying on another.
2. Don’t be confused about your finances unnecessarily. If you need more than one bank account, to ensure you understand where your money is going, open it.
3. Don’t trust the bank balance you see stated at the ATM. When you check your bank account there is no way of knowing what payments have not yet been taken. Don’t rely on the figures at face value. A budget will ensure you are fully aware of your bank balance at all times.
4. Don’t ever use a credit card to make cash withdrawals. You will face a penalty charge for doing so and interest will start gathering the second your money is out of the machine. Don’t spend money unnecessarily.