Today, with the current economic and debt crisis, we are getting advised to continue saving money. Although the country has enjoyed a great economic boom in the 90s and other times in the past, there could still come a time when you and your partner could find yourselves out of work. In order to avoid economic hardship, it is advisable to put aside 2-3 months worth of salary in case you find yourself in unemployment.
However, do you ever wonder why, even though you and your partner seem to make good salaries, it is impossible to save any money? You feel that the money quickly disappears just after seeing it arrive. you are really trying to save money but you find pretty much an impossibility.
Being able to save money isn't as impossible as you may think. The first obstacle that people typically face when attempting to put money aside is organizing their finances. The reality is that you are spending more money than you think and it's very likely that you are unaware of this.
An excellent way to start saving money is by keeping track of what you spend. You only need some paper and a writing utensil. This must accompany you everywhere and everything that you buy must be recorded down to the last penny. Even small purchases must be recorded in order to be as accurate as possible about your spending habits.
It is recommended that you do this exercise for about 2 weeks. This exercise can be tough to complete but just remember that it is one of the most effective ways to get rid of bad spending habits. Once you've completed this 2-week task, you will need to review all your expenditures. You will quickly start to see where all of your money is going.
Many who complete this task are shocked to see how much money is spent on small items. 1 dollar on a newspaper, for example may seem quite insignificant but over the course of a year amounts to 365 dollars.
There are 2 things that will occur once you see how much you spend on small items. The first thing that will happen is that you will not be happy about it. It's common to spend a great deal of money on small items over the course a year. As a result, people get angry with themselves about this. Secondly, you will set out a plan to change your spending habits. As a result, you will make a decision as to what items are necessary and what aren't.
If you want to really start saving money successfully, it is imperative that you keep track of your spending. This is important because it will show you clearly where your money is going and show you how to make a plan to save money during an economic crisis.
