Money is growing into a little nest egg. There are many ways that you can use, how to save money each month from your salary it might be a real saving for your life long. Saving some money for yourself first,that’s the most important thing you can do when you are earning money from your salary, from your pay cheques certain amount of money may be $50, $100 or 5% of your pay cheque depend of your earning income and spending expenses, that you have to decide that first, how much you are going to save from your pay cheque. If you think you can save what ever you paid for the bills and cost of living then left over is your saving, it is not real saving that kind of saving is not work out in real life its also kind of saving money for spending, because that kind of saving when ever we need lump sum of amount to pay our equipment or any other needs.
Saving yourself first its makes sense for you. You are going to work everyday to earn money for you and your family, That’s why you should save yourself first and take care of you first, when you are earning money.
One of the best saving method is to pay yourself first. What this that means – it s means you have to decide a certain amount of your pay cheque as your pay. When you pay yourself first, you have to set up an automatic way of paying this so that you don’t even have to think about it it just happens. You can get your employer to deduct a certain amount and put it in your RRSP or you can set up automatic transfers with your bank GIC or Tax free investments. That you can do online banking or at your local branch.
Most people are using this method to find that they very quickly get use to living on a little less and soon they don’t miss the amount that they are paying themselves in their savings account. When you almost forget about automatic savings and let them grow, amazing things happen automatically. Automatically saving $100 a week turns into $5200 a year.
Now if someone did this over a lifetime, they can getting some good result by the method of saving. If someone automatically saving $50 every pay cheque bi-weekly from when they were 25 until they were 65, they would end up with almost $207, 500, if they only received a 6% rate of interest. for sure someone can afford to save more once they can get their house paid off. They can expect their final saving amount could be higher then expect. Hopefully you can see how easy it can be to saving big amount of money with just a simple automatic set up where you pay yourself first.