money

Tips for Saving Money

Sometimes saving money can be quite hard, especially when you have to pay for rent, bills, and even tuition in case you’re still a student or you have a kid. And despite the hard work that you did, there are times where you want to treat yourself, perhaps new clothes, good food or even a vacation to somewhere else just to unwind. Well, worry no further because we’re going to help you. In this article, we have written some tips on how to save some money for your self, read this article to find out more about it.

Make a list of your financial situations

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Before you start to save some money what you have to do is to make a list of your financial situations, and you can start by what you have to pay every month, and how much you’re getting each month. By creating this kind of list, it’ll help a lot with how you’re going to manage your money, where your money will go, what can be cut and what can be subsidized. If by any chance you’re in debt consider IVA for getting out of debt. If you’re wondering What is an IVA, click here to know more about IVA as IVA can help you with your debts.

Bringing packed lunch

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Another simple way to save money is to bring your lunch to work. We often go out during lunchtime, and eating out can be very expensive and not to mention not very healthy. You’ll be surprised how much you can save by packing your lunch, so consider packing your lunch. Need more reason on why you should start your meal prep? In case that you’re dieting you have full power on your lunch, you can cater it to what you like while also keeping it healthy.

Walk if you can

Instead of taking the bus or getting a cab, consider walking if it’s still reachable as walking is regarded as an exercise and you’re saving that transportation/gas money. Don’t do this if you’re late to work though, only do it whenever you can.

Borrow or rent

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There are occasions where you have to wear something fancy, such as a wedding party or perhaps a bachelor party, and on occasions like this what you usually think is to buy new clothes to impress people, which is very expensive and you only wear once! Instead of buying new clothes consider borrowing from your friends or relatives, which can be very cheap compared to buying new clothes.…

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Various Reasons Why One Should Keep Cash

Different people have different spending habits. Some people can keep cash while other keep cash in other forms. In economics three motives explain the spending habits of an individual:

• Speculative motive
• Precautionary motive
• Transactive motive

People who reflect a speculative motive of money are those that keep cash in speculation that the prices of goods and services will go down in the future. They don’t don’t make investment speculative that the investment may cost less in the future. People who reflect a precaution motive of spending are those that hold cash in fear that unforeseen happenings might happen in the future that needs to be catered for. They hold money to honor future obligations that may arise. They are people who hold money in fear of things like diseases, inflation, and economic instability. Finally, people who reflect a transactive money motive are those that hold money for day to day transactions. They are people who never want to fall short of the minimum daily spending. These are reasons for keeping the cash.

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To make investment

Investors know that investment opportunity is very rare and come one in a lifetime. For this reason, a serious investor will always have cash preserved for making investments. There are different types of investment that one can make. The main reason why people hold money to invest is to invest in high-risk high-return kind of investment. This is investments that include the purchase of share and securities. A company’s share will fluctuate depending on the economic condition of an economy. An investor will look forward to buying a share when they are selling at a low price at latter sell them when the prices increases. For this purpose, one has to be very ready with cash. Immediately the shares of a company drop, one will make buy the share.

To give out a loan

When one has more money than he can spend, he can give simple loans to friend and relatives. This is very common in family businesses. There is always that one person who is investment adverse and have a lot of cash in his belonging. The other members use this as a source of finance to meet current expenditure. The amount of loan given should be returned with interest. The interest is used to meet the transaction charges as well as making profits. Loans should only be given to trusted persons and should be used in an income generating project.

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Meet future expenses

Expenses will always occur in the future. Future bills and obligation will need to be honored. One can hold money to meet the future bill. People say that tomorrow lives because of today. The future success depends on the amount of preparedness in the present days. One should be careful not to hold a lot of cash. In the event of inflation, the cash may lose value. One should observe prevailing economic conditions before keeping the cash. Cash can also be kept in other forms such as securities and current assets.…