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Academic Essay:

HOW TO SAVE MONEY


This essay will deal with five ways to save money in a practical way: record your
spending, create a budget, make a plan for saving money, have a savings goal for certain items,
and decide on your priorities. There are more methods to consider, but these are a good start for
those who are lost in the forest of saving money.

The first step people might take is recording their spending. It is a practical decision that
allows for transparency and calculation. According to Better Money Habits, “Keep track of all
your expenses—that means every coffee, household item and cash tip. Once you have your data,
organize the numbers by categories, such as gas, groceries and mortgage, and total each amount.
Consider using your credit card or bank statements to help you with this” (“Saving Money Tips –
8 Simple Ways to Save Money”). It might seem painstaking, but this process will help you to
note how payments and purchases affect your balance, and savings ultimately.

Another important factor in saving money is creating a budget. This is usually done after
reviewing all your transactions and what you need to use your money for in order to survive. As
stated by America Saves, “Create a budget that you can stick to. Look at places you can cut back
in order to pay down high-interest debt and save. Each week, check your finances to make sure
you are staying within your budget” (Bryan, Katie). The most essential factor in creating a
budget is knowing you can keep to it through the bumps on the road of your finances.

As an extension of your budget, you can create a plan for your spending. You can give
exact percentages and figures. According to Better Money Habits, “Try to save 10 to 15 percent
of your income. If your expenses are so high that you can’t save that much, it might be time to
cut back. To do so, identify nonessentials that you can spend less on, such as entertainment and
dining out, and find ways to save on your fixed monthly expenses” (“Saving Money Tips – 8
Simple Ways to Save Money”). It might be painful to slash out certain areas of your life you
enjoy spending money on, but in order to save money, you have to sacrifice some of your desires
in order to achieve your goals.

A useful tip in addition to the previously mentioned points is that you can save money
with a certain item or items in mind. Sometimes focusing on a certain object of desire can work
better for people in terms of saving money. According to Better Money Habits, “One of the best
ways to save money is to set a goal. Start by thinking of what you might want to save for—
perhaps you’re getting married, planning a vacation or saving for retirement. Then figure out
how much money you’ll need and how long it might take you to save it” (“Saving Money Tips –
8 Simple Ways to Save Money”). Whether short-term or long-term, it is good to have a goal in
mind while saving money.
Finally, prioritizing the way you spend and save money is a key element. According to
The Balance, “Each individual will have slightly different priorities, but no matter what those
priorities are retirement and your emergency fund will come first. After that, you can focus on
your other goals and building wealth. Once you determine your priorities, you can create a chart
or excel sheet that lets you track your progress on your goals” (Caldwell, Miriam). So, setting
priorities is a nuance you should take into account while creating your spending and saving
plans. Looking back, we can say for certain that saving money is possible for the average citizen.
However, there are certain ways you have to go about it: noting down your spending, making a
budget, creating a plan for saving money, setting a savings goal for particular items, and figuring
out your priorities.

References:
“Saving Money Tips – 8 simple Way to Save Money”. Better Money Habits, Bank of
America, 6 Sept. 2018,
bettermoneyhabits.bankofamerica.com/en/saving-budgeting/ways-to-save-money.

Bryan, Katie. “Creating a Budget”. America Saves,


Americasaves.org/for-savers/make-a-plan-how-to-save-money/creating-a-budget.

Caldwell, Miriam ”How should I prioritize my savings goals?" The Balance,


www.thebalance.com/how-should-i-prioritize-my-savings-goals-2386146.

Link:
https://academichelp.net/samples/academics/process-paper/how-to-save-money.html
Summary:
Saving money is really hard if you are surrounded with luxurious and tempting things. It is very
tough to save money as compared to earn money. These days, there are a lots of options available to earn
money but for saving money, you need to plan accordingly. You need to understand the art of saving
money.
To have a successful goal in saving, here are some practical ways that will lead you to success
based on saving money tips 5 simple ways to save money. First, record your spending and keep track in
all your expenses for you to be updated on your balance and savings. It is a practical decision that
allows for transparency and calculation. Second, create a budget, use your money wisely and
appropriately. Budgeting is simply balancing your expenses with your income. If they don’t balance and
you spend more than you make, you will have a problem. Third create a plan, identify the exact
percentage and figure or save atleast10-15 percent of your income. Planning is one of the most powerful
and effective ways to attain what you want. And set a goal, visualize your intentions and priority why you
spend and save your money. Setting goals gives you a long-term vision.
Therefore, saving is possible for a person that is responsible. It is difficult, but always think that
nothing is impossible for a perseverance and diligent person. "Set your goal; Stick to it, and everything
will be on their perfect place”.

Reaction:
Money is such an incredible teacher, what you choose to do with your money shows
whether you are truly influential or incapable. You need to understand the art of saving money.
The habit of saving itself is an education. It fosters every virtue, teaches self -denial, cultivates
the sense of order, trains to forethought, and so broadens the mind. Saving money is a
manageable thing for most people. The key is understanding how to go about it in a proper way.
It takes some motivation, organization, and determination. Sometimes it seems like a mystery,
though, as it appears money slips out of the hands of some people. That is why “How to save
money” is one of the most common questions on the internet. There are advantages and
disadvantages in saving money. Let’s start with disadvantages in saving money, first off, saving
money means you aren’t spending it. And it is possible to be too frugal. Second, if you focus too
much on saving money, you might make poor decisions when it comes to expenses. Third, you
can also miss out on experiences because you’re saving money. Of course, for every
disadvantage of saving money, there’s an advantage out there. The big advantage to saving
money is that you’re prepared when you need to spend it. By putting money away, even small
amounts at a time, you might be able to someday make a big purchase without having to finance
it. If you are saving your money in a bank account or in CDs, you will also be making money by
saving money. And you can invest some of that money and help it continue to grow.
To me, the key is to balance the advantages and disadvantages of saving money.
Save, but not too much. Find the balance between your savings goal and your spending needs
and want.

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