$$ How to start saving Money $$

Let's stat with WHY should you read this?

You work 2080 hours per year for money, my question: how many hours do you dedicate to learn how money works?

48% of Americans want to be financially prepared for the future, but 97% aren't making time to do so.

Only 3% of Americans spend time on household financial management on an average day.

So, if I got your attention, let's start with simple 6 Steps on How to Save Money:

1. Know your expenses

Before you start a journey, you must know where do you stand!

So, first thing first, record and analyze how much do you spend on a monthly basis. This includes not only your mortgage/rent, utility bills, Uber eats (considering Pandemic situation), Transportation (your car or public transit or Presto card etc.) Don't miss to record small expenses like coffee, cash trips or monthly subscriptions like Netflix, YouTube, Spotify etc. Beware of little expenses. A small leak will sink a great ship.

Tip: Leverage any free expenses tracker application suitable for your mobile device. Top Apps at this point of time are You Need a Budget (YNAB), GoogleBudget, Mint, Zeta (for couples) or a Notepad!

2. Set Budget

Budget is telling your money where to go instead of wondering where it went.

Categorize your expenses in to three simple classes: Essentials (Must DO's), Good to have and Luxury. You can have sub-categories if each if you like. The Apps recommended above should be able to do this job for you.

Tip: Don't miss to budget for quarterly, Semi-annually or annually expenses like Lump Sum investments, Car or house maintenance.

BONUS TIP: Use 50-20-30 rule - this is a money management technique that divides your paycheck into three categories: 50% for the essentials, 20% for savings and 30% for everything else. Read the book "The richest man in Babylon"

3. Cut unnecessary expenses (if needed)

No man is rich whose expenditure exceeds his means and no one is poor whose incomings exceeds his outgoings!

Analyze your expenses carefully to eliminate all non-essential expenses specially the ones you don't use much and are have automatic renewals. I generally give example of taking your coffee to the office instead of getting it from Starbucks or Tims - this alone can save you few bucks.

4. SET "WHY" for your saving GOALS

Remember the golden circle - Start with WHY, figure out HOW and WHAT.

The only way to start saving money is to set out YOUR SAVING GOALS. Categorize your goals to Short Term and Long Term.

Most people overestimate what they can do in one year and underestimate what they can do in ten years.

5. Seek advice from a professional

In this complex environment, sometimes all you need is a advice from a professional. Everyone is emotional about the money and try to learn the basics however many a times either people lose the money or lose track of their main source of income (profession). I generally take it an analogy while explaining it - if I have heart problem I will not try to become an heart surgeon however will try to learn the very basics and will let the professional (doctor in this example) do his job!

Asking for financial advise from a financial planner is like asking a barber if you need a hair cut!

6. Review your Financial Plans regularly

If you can not measure it you can not improve it!

Sit down with your Financial Advisor on a regular basis to see how your investments are growing or if there are any changes necessary. Make the time to take care of one of the most important thing in life - YOUR MONEY.

"Money is not everything but it ranks up there with Oxygen" - Jim Rohn

Money can't solve all your problems but can solve your money problems.

Hope you found this valuable, if you did, please don't forget to like & share!