Tips on how to save money

| Total Words: 729

Money is an essential element in every bodys life. It is the one that we exchange to get all the necessary things in life. And that is exactly the reason why we work all day and sometimes night. Since the flow of money in ones life is not uniform, it is only prudent to save some money for the crunch days. Economics permits one to spend his/her money in any amount as he/she wishes. But how rationally one could plan so as to maintain a minimum level of backup in any given day is directly linked with his/her ability to save.

In daily life, even if we know that we are spending money to buy things we need, most of us tend to over see the fact that more than 50% of the spending is for purposes that are quite unnecessary or those expenditures can be avoided without affecting ones basic life style. Exactly this is the point from where one should start thinking of saving money.

Distinguish between and clearly understand your needs and wants. Needs are those things one require to sustain his/her basic needs. Want on the other hand refers to anything that is not an absolute necessity but which presence enhances ones way of life. For example, a car can be a need but a...

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