essay on ways to save money
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Money is a vital asset in life and without it you could end up with nothing. That is why saving money is even more crucial. With the economy the way that is and prices on our everyday items continuing to increase, such as gas and groceries, it can seem almost impossible to save money. There are also those unexpected moments in life where an emergency fund could really come in handy. There are so many other reasons to save money as well like for instance, your retirement. By saving money for when you’re older you can afford to retire more comfortably instead of just living off what the state will give you. Then of course if you have kids you might want to consider saving for their college. These are just some reasons my boyfriend and I find it critical to save money and we do it by just following three simple steps.
The first step to follow is setting a budget. Budgets are a practical way to track your spending and be sure your money is going where you want it to go. To start your budget you need to first identify how you are spending money now. Bills always come first, so start by adding up what you pay a month for utilities, rent or mortgage, vehicle payments, insurance, and whatever else you might pay for. Normally it’s best to write everything down on paper before actually spending any money. You can also have your budget on paper or you can do it on the computer with certain types of software like Microsoft Money, where the program itself does your budget for you. My boyfriend and I do something called the envelope system, where you put money in different envelopes for certain things. For example, one of our envelopes we wrote “phone bill” on so we put the amount of our phone bill in that envelope which is usually $82.00. After evaluating your current spending, set yourself some goals that will affect your long-term financial state.
Step number two is separating your needs from your wants. Hopefully after figuring out