When I noticed that the richest man in the world Elon Mask has warned a recession is more likely to come soon, I am witnessing the results of inflation happening sooner or later. Inflation has steadily increased, costing me more for everyday essentials. I can feel the biggest pinch with steep food, and housing prices. There has been sustained pressure on my wallet. It is not likely to ease up anytime soon. It is definitely affecting my savings and earning potential.
Since I am getting older, I need to save money to create a sense of stability and control over my finances. Keep reading for some money-saving tips that will turn into the person I want to be.
The first place to start, I need to assess how much I really have and where that money is going. At least 30% should go towards savings, and 50% should go to essentials like rent and food. Keep a record of what I have spent, to see how small expenses take away from your monthly savings. I may not think that coffee every once in a while.
Think twice before I want to make a large purchase, write it down what it is and how much it costs, and if after few weeks you still fell it is necessary, purchase it. A good rule of thumb is that I have to dip into my savings to make the purchase, I should wait a little longer until I save more money. For instance, originally I want to buy a coffer machine, cost around USD$700, after thinking about it around two weeks, I feel that it is not necessary as I can make the better coffee with handmade.
I should not make any riskier investment movement in this period of time. I must be aware of certain stock markets violation that loss your money in a short time. Making beneficial fixed deposit on US dollars, I could have a little interest rates and put more money into my pockets over a year.
Avoid going into debt in the first place by spending within my limits. Saving my money to create an emergency fund that help me to pay unforeseen medical expenses or unexpected expenses down the road. Otherwise, I could save it for my retirement, and I can determine how much I need and break that down by decade to make sure I am hitting my goals over time.