There’s a lot of advice out there for people who want to save money for a rainy day. Unfortunately, it’s dispersed all around the internet on a number of sites, so it can actually take up evening after evening of your time to learn how to save. This can be too much for some people, and so they put it off. Ultimately this leads people to ignore their common sense and spend all of their money when they really ought to be saving some of it. When there are so many people out there learning how to survive on minimum wage it might seem like saving money is a fairy tale, but hopefully our tips below will help.
Wage Minus 20 Percent
Ultimately, the golden rule to follow as soon as you start pulling in a wage and you’re looking to start saving, is that you should aim to save around 20 percent. This sounds like a lot, but remember that it’s an average and you can always simply save a little bit less one month and follow it up with slightly more savings in the following month. If you struggle with this target, don’t be too steadfast with it – it’s only a guideline, and if you put your savings target before your other financial obligations, you may end up being fined.
Making Your Money Work for You
Although it might appear otherwise, money is not a static thing; instead, it’s fluid and flexible, meaning that if you know how, you can make it work for you. You see, money’s a tool. One way to make the most of your money is to invest it. If you don’t have thousands of pounds worth of capital, you might not be able to afford to purchase a property – perhaps the safest type of investment. Therefore, you will need to try out riskier methods of investment such as foreign exchange. Using an ECN MT4 account through a trading platform such as Alpari’s, you can open a virtual account, meaning you can practice trading currencies to exploit the exchange rate at your leisure, all without the pressure of worrying about losing your hard-earned money. When you’re feeling more comfortable with your ability to trade, you can then convert your account to a real one and start investing with a minimum of $200.
Generating a Side-Income
Aside from saving in the traditional sense, you can also generate savings by investing a small percentage of your income into a side-income business. The way to do this would be to take one of your passions – be it jewelry, art, wine etc. – and to turn it into a small e-business. It’s almost trivial to set up an eBay , Amazon or Etsy store these days, and with more and more people doing all of their shopping online, you’ll be putting yourself in view of the world’s consumers. So, by applying your hobby, you’ll be able to put more into your savings.
So there you have it – three good ways to save money. Follow these tips so that when that rainy day arrives, you’ll have some money to spend.