Saving Advice and Budgeting
Saving Advice is an online community dedicated to the idea that saving cash is great. A number of resources are available for free advice on all facets of personal finance such as debt reduction, how you can save cash, ways to earn more cash and how you can invest. Saving cash is the key to financial security and well being. Unfortunately, most people don’t have a clue about what type of saving they should be doing or what they can do to achieve it. There are a number of benefits to having a solid strategy regarding money saving and one of them is financial security.
One common saving advice that a lot of people take for granted is budgeting. The problem is that many people simply don’t know how to effectively and efficiently plan out their monthly and annual expenses. In fact, there are some budgeting myths that have even caused people to lose money. Some budgeting myths include the following. There is no such thing as a free lunch and budgeting your money properly will make you rich.
Another myth is that saving will put you in debt and bankrupt you. Saving doesn’t always equal debt reduction. Debt is something that can be managed very well. Debt reduction only occurs when your income increases and you start spending more than you make.
The third myth surrounding saving advice and budgeting is the idea that you can spend more without spending more. This is simply not true. Your spending must match your income. If you are saving and cutting back, you are still going to be spending on things such as your mortgage payment, utility bills, car payment, etc. A good way to ensure that you are not incurring any unnecessary expenses each month is to create a monthly budget that outlines all of your monthly expenses along with your income goals.
The fourth myth around saving advice and budgeting is that you need to wait for an economic boom. No one knows when an economic boom will happen nor does it necessarily mean that it will benefit everyone. It will either benefit those that have saved enough money over the years to live comfortably or it will hurt those that have spent all of their money on living expenses before they have earned any money. A smart shopper understands that the price of a product goes up and down all the time based on demand and supply. When you factor in your monthly paycheck, your expenses, your goals, your risk tolerance, your knowledge level about how the economy works, and your overall financial situation, it becomes clear that a saving plan simply cannot work without some type of investment.
The fifth myth surrounding saving advice and budgeting is that you can’t invest the money you save and you won’t earn back any of your investments. This is simply not true. Most people can not only afford to save but also have investments. Just like you invest your money in different investments, you can also invest your money and earn back a percentage of your savings.