Making Money Work for You - Part 1

Make your money work for you.

Part 1: Importance of Savings

In order to let money work for you, first and foremost, you'll have to save. Make it a habit to save a certain percent of your income (salary) monthly. Your active income should only be spent on needs and savings. Examine yourself and write a list of your real needs and wants. This will help in preparing your budget later on which will provide you with the savings that you need.
Here are some real basic needs to help you with your list.
  • Food (home-cooked meals are cheaper than eating out at fancy restaurants)
  • Clothes (Presentable and clean clothes are all you really need. Stay away from expensive designer clothes)
  • Housing and Utilities (A simple house to provide you with shelter and with all the basic amenities is all you need.)
  • Transportation (Buying a car, in most cases, is not really necessary. Commute if it saves you more)
  • Education / Insurance
  • Leisure / Travel / Parties (Balance in our lives is important. Spend a little for recreation but limit your spending to those that you can afford. Leisurely activities are mostly part of your wants and not your needs anymore.)
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Watch out for the succeeding parts in the weeks to come.

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2 comments:

  1. Hi Care for a link exchange?

    on September 8, 2008 at 3:15 PM  


  2. Sun Jun said,

    Hi aspiring entrepreneur!
    Thanks for dropping by my sites. I'll inform you when I'm ready for link exchanges so we can exchange links ^^

    on September 8, 2008 at 10:45 PM