Posted on: Fri 23-10-2020

Sometimes the hardest thing about saving money is just getting started. Our careers are quite very demanding because we have patients to take care of and some of us families too to take care of as breadwinners, in the end we find out that we do not have much time on our hands, because we are busy taking care of others. 

This step-by-step guide for how to save money can help you develop a simple and realistic strategy, so you can save for all your short- and long-term savings goals.

1; Record your expenses

The first step to start saving money is to figure out how much you spend. Keep track of all your expenses—that means every coffee, household item and cash tip.

Once you have your data, organize the numbers by categories, such as gas, groceries and total each amount. Use your credit card and bank statements to make sure you’re accurate—and don’t forget any.

2; Budget for savings

Once you have an idea of what you spend in a month, you can begin to organize your recorded expenses into a workable budget. Your budget should outline how your expenses measure up to your income—so you can plan your spending and limit overspending. Be sure to factor in expenses that occur regularly but not every month, such as car maintenance.

Tip: Might be tough but include a savings category—aim to save 10 to 15 percent of your income.

3; Minimize your Credit Card Use (IMPORTANT)

Although some jobs in the nursing profession offers job security, you need to learn that it is advisable to spend the money wisely, in order to achieve other financial goals. The next valuable tip is to avoid using your credit card as much as you can, and, therefore, do the small purchases using cash. You might decide to reserve the credit card use for big purchases only.

4; Find ways you can cut your spending

If your expenses are so high that you can’t save as much as you’d like, it might be time to cut back. Identify nonessentials that you can spend less on, such as entertainment and dining out. Look for ways to save on your fixed monthly expenses like television and your cell phone, too.

Here are some ideas for trimming everyday expenses:

Delete your bank app; to reduce online credit expenses

Cancel subscriptions and memberships you don’t use—especially if they renew automatically.

Commit to eating out only once a month and trying places that fall into the “cheap eats” category.

Give yourself a “cooling off period”: When tempted by a nonessential purchase, wait a few days. You may be glad you passed—or ready to save up for it.

5; Set savings goals

One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for—perhaps you’re getting married, planning a vacation or saving for retirement. Then figure out how much money you’ll need and how long it might take you to save it.

Here are some examples of short- and long-term goals:

Short-term (1–3 years)

Emergency fund (3–9 months of living expenses, just in case)

Vacation

Down payment for a car

Long-term (4+ years)

Down payment on a home or a remodeling project

Your child’s education

Retirement

Tip: Set a small, achievable short-term goal for something fun and big enough that you aren’t likely to have the cash on hand to pay for it, such as a new smartphone or holiday gifts. Reaching smaller goals—and enjoying the fun reward you’ve saved for—can give you a psychological boost that makes the payoff of saving more immediate and reinforces the habit.

6; Decide on your priorities

After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. Be sure to remember long-term goals—it’s important that planning for retirement doesn’t take a back seat to shorter-term needs.

Tip: Learn how to prioritize your savings goals so you have a clear idea of where to start saving. For example, if you know you’re going to need to replace your car in the near future, you could start putting money away for one now.

7; Make saving automatic

Almost all banks offer automated transfers between your checking and savings accounts. You can choose when, how much and where to transfer money or even split your direct deposit so a portion of every paycheck goes directly into your savings account.

Tip: Splitting your direct deposit and setting up automated transfers are simple ways to save money since you don’t have to think about it, and it generally reduces the temptation to spend the money instead. With Mobile & Online Banking, you can easily set up automatic transfers between accounts.

8; Spend your Free Time Doing Something Constructive

Our profession is very demanding and at the end of the shift, you are always tired and ready for a long deserved rest.  Avoid the urge to go for shopping and spending spree, you can stay at home and do something constructive like reading a book, gardening and other activities that do not cost you money.

9; Observe Healthy eating (IMPORTANT)

We are in the health profession, but it is challenging to stay away from the fast foods because of our busy schedules. It is easy to grab a burger on our home because we are so drained at the end of the day, such that we can barely stay awake. However, we can adopt healthy lifestyle and start eating right. You will notice the difference in your monthly budget when you eliminate the fast foods expenses.

Yes you can apply some of thes saving tips, and you might see a significant difference in your monthly budget.

By Avalon

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