As we start the New Year afresh anticipating writing memories on a fresh set of 365 metaphorical pages, undoubtedly most of us would also have certain resolutions in our mind which we would love to accomplish. One of the more popular resolutions people are likely to make would be spending less and saving more. In my effort to help achieve this I have coined a six step approach. We shall call it the SPIDER.
Just as a spider traps its prey in the web it makes, you can trap savings in the web of this approach. The approach developed is just a simple change in habits which brings about a substantial change in the savings we can make. It is easy to follow the approach:
1. Spend smartly: It seems that most of us have a list of things we want to spend on before the month we receive our salaries. The idea is to spend smartly and not spend too much on things that we may not need generally. MC tip for women: Avoid the pretty Azure bag if you don’t have at least 3 pairs of clothes that go with it.
2. Priorities: We often get forget to weigh our spending on a scale need and want; not being able to strike a balance leads to a bad spending decision. Learn to choose priorities right and spend on needs first and then want. At the cost of repetition, make a monthly/yearly budget and track it every week. MC tip: Watch out for the common splurging confessions by UAE residents including weekend getaways at 5 stars, sports cars, frequent spa treatments & too many friday brunches!
3. Include: ‘‘Family means no one gets left behind or forgotten’’-David Stiers. It is a good idea to include your family in this endeavor of savings. Make moneywise family decisions on big expense heads such as Education, Travel and Cars.
4. Divide: A little math is a good to do before you receive or spend your salary, dividing between what you wish to save and what you spend. Go through your list and account for the possible expenses and budget your expenses carefully.
5. Educate: One has to be an educated consumer .This means being aware of the best policies, best prices, best offers and the best places. A little market research is vital for making right decision in the long run. MC Tip: Compare rates for loans and Credit cards on MoneyCamel.com. Compare airlines fares on farecompare.com
6. Recognize: Recognize that you are saving for a reason. This helps you keep sight of your predetermined goal and keeps you motivated and on task. Use MoneyCamel Tools to plan your savings for all stages in life from Annual Vacation to Retirement Funds and
These six steps/SPIDER approach will prove to be instrumental in your goal of saving more this year.