How to save money the basics & advanced strategy

The steps that will teach you: how to save money:

Here are the steps needed in order for you to know and Implement how to save money. follow this steps to have more cash in your pocket at the end of each month. 

  1. The first step is to make a family budget that will take into how to save moneyaccount your income on the one hand and allocate it to the various expenses you use to maintain your way of living. sound simple, well it’s not because it demand out of you to look reality in the eyes and confront your behavior, and make the change for the better. The best way to illustrate it is by explaining the “latte factor” – generally means if you buy a latte every day for $5 you could have put that money at an index fund that make 5-7% annually over a period of 30-40 years you would ruffly get $100,000 and more at your retirement! you see saving help your future while spending destroys your future. every research in the world state that this generation will live longer and be much poorer than our parents generation and the number one reason for that is spending compared to saving. The difference between rich people and poor people is that rich people save first, and what’s ever left spend, while poor people spend first and what ever’s left (usually only credit card debt) save. so you see the key is saving and delay satisfaction.

how to save money basics

Earning: First record all your learning from all sources – salary, CCR, interest from deposits and so on,

This is the easy part of how to save money guide because you only have a few sources when you finish you are faced with what’s left after the government took their cut.

Expenses: nowhere the best way to go is by downloading your bank statement and go line by line to see what you actually spend money on, don’t forget to take into account any spending you make in cash!

Now if you are renting all you need to do is replace the renting part with all the expenses that involve with owning a house – mortgage, strata, water and council rates.that will give an idea of how life is going to be when you’ll own your place. 

Saving Strategies:

compare prices of every vendor – including mobile phone, electricity & Gas, the internet, heath insurance, CTP, car insurance, and every fixed cost, making sure you compare overall costs and not grace periods. use the following websites:





  1. Another strong point of the how to save money guide is Start making the hard decision – like spending less every month, buy groceries at low-cost places, buy less of things you don’t use. make a goal and stick by it at all cost, your life depends upon it.
  1. Do you eat outside? all the time? you can save a fortune if you just bring food from home, and eat much less after hours outside, and you will eat healthier food in the process.
  1. Do you buy new thing every 2 years? maybe you can make the habit of buying new things every 10 years? can you find what you are looking for at second hand websites like – Gumtree – do you use all the clothes you buy? why do you need more of things that you don’t use? stop owning and buying things you want to focus on the things you need, now that can be tricky because companies will make you think you need everything,  and that is a lie! you do not need a new iPhone every year, you don’t need a new shirt when you just bought one last week. think long term, what is the best usage of your money long term? and how can you maximise your hard work earning to the best long term result for YOU.
  1. Make sure you check on a monthly basis that you are doing as well as you suppose to do – this is key, because without this part, all the rest is useless.

For conclusion:

Budget is the number one tool for long-term success, every company in the world uses this tool, because it help to count for actions and help improve overall financial mistakes, and you should use it as well because you’re future depend upon it!