My money savings plan
Saving money is one of those tasks that is so much easier said than done, and I learned it the hard way. However, I managed to stick to the plan I drafted more than two years ago. Here are its main highlights.
Get a savings account
Yes, everybody tells you that you should get an interest-bearing savings account. Little do a lot of people know, however, that this account shouldn't be accessible from your online banking interface -- this way you will never be tempted to wire the funds back to your checking account and go on a shopping spree. If you must go to the bank in person to do it, then you will have plenty of time to think about it twice.
Deposit a fixed cut of all your take-home income
If you earn a fixed salary, then it should be easy -- you know how much money you are going to save every month. Don't cheat! Just imagine that you did a booboo at work and got a x% penalty. You can even set automatic transfers from your checking account into the savings account, so that you never actually see the extra money in your balance.
Match all unnecessary expenses with savings
So you want to go clubbing and spend $200 in one night? Fine, but first deposit another $200 in the savings account. If you want to be really effective with money saving, impose that you'll save 1.5 or 2 times the amount you're going to blow.
Pay off your credit cards religiously
Credit cards aren't inherently evil, if you are a responsible person and use them properly. If you pay off the balances in full at the end of each month, credit cards may even be profitable because you can avail the introductory offers like cash backs, airline miles and the likes.