Saving

Entry for today is about SAVING . Saving on what? Of course, money , money , money and money .

Assalamualaikum ,

Let me tell you about the definition of Saving . According to Keynesian economics, saving is the amount left over when the cost of the person's consumer expenditure is subtracted from the amount of disposable income that he or she earns in a given period of time or "SAVING" in Malay is SIMPANAN .

For student macam saya, confirm duit dah habes banyak untuk itu dan ini . Bukan tak saving langsung kan, but the value saving is not enough . Arghh! Stress kan ! Now, baru lah sedar lagi banyak saving , lagi banyak benefit sebenarnya. For student, Saving memang penting, so SAVING lah ^-^

Let's see the top seven reasons to save money:

1.SAVE FOR EMERGENCY FUNDS
It is important to have emergency fund set aside to cover unexpected expenses such as a sudden job loss and also unexpected car repair. So , this saving will help us to cover the emergency problem.

2.SAVE FOR RETIREMENT
Another important reason to save money is your retirement. The sooner you start saving for retirement, the less you will have to save in the future.

3.SAVE FOR A DOWN PAYMENT FOR A HOUSE
A third reason to save money is for a down payment on a house. Your negotiating power goes a lot farther when you have a significant down payment towards your home. You will receives better interest rates, ad be able to afford a bigger home. You can determine how much you save towards this each month depending on your circumstances.

4.SAVE FOR VACATIONS AND OTHER LUXURY ITEMS
A fourth reason is to save money is to have fun. You can save up for your tour of Europe or that Caribbean cruise. Additionally you can be saving for fun large ticket items such as Playstation 3 or a new boat.

5.SAVE FOR A NEW CAR
A fifth reason is to purchase a car with cash. You will be amazed at how much money you can free up in your budget if you do not always have a car payment. You can also negotiate the price of the car much lower if you are willing to pay cash at the dealership.

6.SAVE FOR SINKING FUNDS
A sixth reasons is to set up your sinking funds. A sinking fund is money you set aside for future repairs or improvements on your car, home or other possessions. This planning can help you to stop dipping into your emergency fund every time you need to fix your car.

7.YOUR EDUCATION
A seventh reason to begin saving money is for your future education. Each year more people return to school to earn their masters or doctorate degrees. You may also consider saving for your child's education when the time comes.

Untuk membuat SIMPANAN, we need to know the ways to save money. There are two parts which is :

SAVING MONEY RESPONSIBLY

1.Pay yourself first. The easiest way to save money rather than spending it is to make sure that you never get a chance to spend the money in the first place.
2.Avoid accumulating new debt.
3.Set reasonable saving goals.
4.Establish a time-frame for your goals.
5.Keep a budget.
6.Record your expenses.
7.Start saving as early as possible.

SPENDING MONEY INTELLIGENTLY

1.Spend money on absolute essentials first.
2.Save for emergency fund.
3.Pay off your debt.
4.Put away money next.
5.Spend on smart non-essentials.
6.Spend on luxuries last.

okay, that's all. TQ ^_-