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    5 Good Savings Habits

    By cooldude | August 8, 2014

    Savings HabitsPredicting the future is not always possible. It would have ben of much help if we could know exactly how much money we would need in the future. So, savings is very important. Smart people start saving early. Savings habit is one of the best habits that you could grow thinking of long term. Early life is the best time to save and establish habit of savings. Financial light is very important and it can come to you in your later years if you save today. There are a few things that you could do to be a super saver:

    1. Plan a budget: First thing you need is a written budget. There is no said plan to fix your budget so it is going to be a trial and error method. Take a pen and paper and jot down all the things you need in your daily life and the prices you pay now. Now compare the price of the same goods that you use with same products of other companies. Choose the cheapest but the best. Cut down on unnecessary products that you buy. Thinking of your needs is the key.

    2. Money savings: open a savings account with a bank that suits you best and start saving every month. Put into that account a fixed percentage of your income. The habit of spending less gives you the opportunity to save more. The savings you make this way helps you in many ways like in emergencies or building houses, etc.

    3. Retirement Savings:If you start saving early for your retirement, the life after retiring is much easier. Try contributing about 15% of your income to the retirement savings every month. This will come handy in the long run. Follow an aggressing savings policy at the start of your career and a more conservative policy at the end of it.

    4. Avoid borrowing money: Do everything possible to avoid borrowing money. Credit cards are one of the most dangerous elements as it lets you buy thingswith no money at that time but you have to pay back the company later. This practice often results in putting you into neck depth of loans. Although it takes a lot of planning and a gradual saving scheme, it is worthwhile because you don’t need to borrow anymore.

    5. A Financial Plan: financial plan means the set target that you are working for. Among these goals should be things like owning a house, having a family, savings for children’s education, emergencies and also retirement plans.Having a financial plan helps in keeping on the right track and also moves you in the forward direction. Take some time out to create a financial plan as the satisfaction you will get of having a financially secured life doesn’t match anything else.

    Savings is a very good habit because it is never bad to have a little more money to spend as you already have enough saved up for all your needs.

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