The need is save is relevant to many of us.  However, as bills, liabilities and unexpected expenses usually hinder our determination to save.  I have here 5 steps to save, especially for women.  I hope it helps you in your quest to save.

Step 1 : Have 2 Bank Accounts
Have 2 bank accounts, one for savings and the other for your expenses.  Please make sure you scout around for the right bank accounts, taking note of minimum balance requirements, interest rates and bank charges.  This should help determine which bank accounts you should open.  Of course, if you already have bank accounts and are pleased with their services, stay on with it.

The first bank account is for you to record your savings.  It should preferably be 10% of your income. If you have extra, set aside an emergency fund for those rainy days. The Emergency fund should consist of 3 to 6 months’ of your living expenses.

The second bank account is for your salary which will be debited and all expense paid from here. It should preferably be your checking account or an account you have used to pay your bills and liabilities.

Step 2: I pay God first, myself second and others third. Treat Savings as an Expense
I like the way Mary Hunt puts in her book, “The Financially Confident Woman” –
Part of all the money that flows into my life is mine to keep; I pay God first, myself second, and others third.
After all that God has done in our lives, we should thank Him for what He has done, not only in terms of money, but also in hours and minutes.
10% of your income to God will be ideal, but if you are unable to give this amount, start giving something within your means.  I believe that a cheerful giver is much better than a grumpy giver.  Give cheerfully what you can give, and if you can give more, I believe your gift will be blessed by God.  A church or charitable organisation of your choice could be the one getting your gift.

Treat savings as an expenses.  If possible, you should pay yourself first before you attempt to pay the rest of your bills. Write yourself a check and put it in the first bank account if necessary.  If 10% is too much for you to save for a start, try saving $10 or an amount within your means.  This savings will then go into your first bank account and should not be withdrawn unless absolutely necessary.
 

Step 3 : Record your expenses for your first 3 months
What you spend, you write it down.  If possible, carry a portable notebook and pen around with you.  You should record your expenses everytime you spend on something, be it with a credit card or by cash. You can categorise it accordingly, like household expenses, food(away), groceries and categories of your choice.  Record your expenses daily, and then add it up weekly.  When you have done all the 4 weeks of the month, add up what you spent for the month. Do this for the first month and subsequent 2 months, until you see your spending patterns.  You will be able to see where the bulk of your money goes, and what you can do to cut down.  Do not worry about restraining your spending during this period.  Spend what you usually do to obtain an accurate picture of your expenses.

Make sure your expenses & bills come from your second bank account in which your salary was debited.  Expenses should come from your second bank account and not your first.
 

Step 4 : Prepare your budget
After you have an idea of your spending pattern, establish a budget for each category.  It should be as realistic as possible, as if you under budget, you might feel disappointed should you not fulfill your budget.  Find out what you can cut down on.  Like is the cup of cappucino everyday absolutely essential or can you bring it from home, which might save you $3 every day or $90 a month or even $1080 a year! Decide for yourself what you can do away with, luxuries and find out what are necessities like food, transport and even clothing.
Try and live according to your budget once you have it planned. If in the initial stage, you exceed your budget, do not be upset and try to find out if you need to readjust some items on your budget in the coming month.   Remember, saving & budgeting needs a lot of will and determination.

Step 5 : Hide your Credit Cards, ATM cards if you cannot control yourself
If you find yourself spending uncontrollably, especially with the ease of a credit card, hide it.  You should only have one credit card, or just in case, 2 maximum.  However, try to pay your expenses or bills with cash, checks or debit cards so as to reduce your credit card bills. “ Spend now, Pay later” is a very painful end of the month experience.  Try and pay immediately so that you don’t have to fret about the huge credit card bills at the end of the month.  Paying one credit card bill with another credit card is definitely not a wise decision.  If you have a habit of going to the ATM ever so often, try and withdraw a certain amount at a designated period of the month.  Say 2 weeks once, you take out cash for what you need, so that you will not make going to the ATM a habit and spend excessively.

However, do be careful when you withdraw money from the bank or the ATM.  Make sure no suspicious characters are near you.  If possible, attempt to pay your bills electronically, so that banks just transfer your money from your account to your creditors or billing organisations.

Lastly, CHECK YOUR BANK STATEMENT, ‘cos banks do make mistakes.  Rectify any mistakes by the banks within 7 working days, with receipts if necessary to prove.

Happy  Saving!

I recommend that you read Mary Hunt’s “The Financially Confident Woman” for more saving ideas.
Order your copy of "The Financially Confident Woman" from Amazon.Com here

Written by : Christine N.
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