Saving Money - The Magic 20 Percent
|Saving money is not easy and is made more
difficult if you have a short-term outlook regarding your personal finances. If, like many
people, you are living from one pay cheque to the next, it is difficult to put some money
aside for a rainy day or for a summer holiday. But what if you were to change your
financial outlook into a medium to long-term one? You might believe that you cannot afford
to think ahead and make plans, but in most cases you would be wrong. Most people should be
able to save some money and with some effort, maybe even as much as 20 percent of their
salary each month.
First of all it is important to have a handle on where your income is going. Unless, we are on an extremely tight budget or are very money conscious for other reasons, many of us have never really sat down and considered what our money is being spent on ? we just know that by the end of the month, it has all gone! You will know if you are consistently spending your money on unnecessary purchases, for example. Having this knowledge equips you with the control to change things a little or a lot.
Saving Money Mentality
Many people have never been taught to save and as children, immediately spent the money they received without any forethought. You often hear people say, "Life is short, if you want something buy it now", but thankfully for most of us life is not really so short and along the way we will have to deal with both opportunities and challenges. Having some money saved will help you make the most of the opportunities and ride the challenges.
Emmanuel Mendonca is the webmaster and publisher of Debt Genius at http://www.debtgenius.com - a free source of information and advice on debt consolidation, getting out of debt and on saving money.
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