Five simple ways of saving money

Photo: Kazi Tahsin Agaz Apurbo

There are two kinds of people in this world: those who are good money managers and those, well, who are not. Unfortunately, the world is filled with people belonging to the second category. Managing and saving up money is no rocket science. Here're 5 easy tricks that may make you rich!

1 * Keep track of money: Forget about saving for a while. Make recording your incomes and expenditures the primary objective. Do you wonder at the end of every month where all your money went? If you maintain a list of your transactions - big, small, tiny - you would not have this problem. There are user-friendly money management applications for free. You can set budgets, record cash inflows and outflows, identify areas where you spend the most, etc. Let your smart phone be your money manager.  

2 * No amount is insignificant: Keeping track of money paves the way to saving up. Start small. Don't be discouraged if your income is relatively low. Imagine a university student with an income of Tk8000 from a part-time job. If he saves up a mere Tk500 per month, he would have approximately Tk24000 in his bank account when he graduates after four years. Even this accumulated amount is small for an effort put out for four years. But think of the contrary scenario: the student graduates with absolutely no savings. If you do not start saving - no matter how minor an amount you can afford to put aside - you will regret it five or ten years from now. 

3* Find out what motivates you: Why do you want to save money? It might sound snobbish and uninspiring, but having money can take you a long way in fulfilling many dreams, from exotic vacations to a good car to a nice house. And of course, let's not forget that you need to save up for a rainy day. Find out what brings out the saver in you. 

4* Force yourself to save: If the carrot-approach doesn't work for you, there is the stick-approach. Open up a savings account or sign in for an insurance service. Allow your company to cut a portion of your salary for provident fund. This way, you are bound to save up. 

5* Budget for overindulgence: We won't ask you to give up impulse buying, stress eating or overspending on a hobby: we have a feeling you won't pay heed to it and continue to do what you do! None of us are super-humans and we do succumb to guilty pleasures from time to time. Make a budget even for overindulgence. Allocate a sum for 'stupid' (unneeded/avoidable) expenditure per month; just make it your goal not to exceed that amount. As long as you have control over money, you will be eventually able to save. 

And here's an extra tip: don't be lazy and start being proactive! Make a start. Don't think of excuses. The more time you delay the more money it will cost you - money which could sit comfortably in your bank account if only tried. The real problem is that whether you would actually like to take up the challenge or not. Will you?