HOW TO SAVE MONEY IF YOU EARN LITTLE:5 PROVEN IDEAS (PART2)

  HOW TO SAVE MONEY IF YOU HAVE LITTLE INCOME?

 There are many ways to save money, but if you have never done it before or if you are currently in a tight financial situation, I advise you that instead of setting a  long-term saving and investment goal  (one that your mind can reach to feel like something difficult to achieve and therefore you are going to put it aside), start with easy savings challenges to meet.

 WHICH IS BETTER: SAVE OR INVEST?

 Although they are two different things and with different purposes, both are equally important for a good financial planning strategy, with a view to creating wealth.

 As a general rule, saving should come before investing, since savings are there to cover those expenses that, during any eventuality, we will need to keep up to date to avoid incurring debt and maintain a decent lifestyle.

 Instead, when we talk about investing money, we should think of long-term "savings", dedicated to increasing our quality of life and meeting future goals.

Now, choosing between saving and investing will depend on the current situation of each family or individual and they're short- and long-term goals; as well as your risk tolerance. 

 HOW TO SAVE MONEY EFFECTIVELY: 5 OF THE BEST WAYS TO SAVE MONEY IN NO TIME

 1. SAVE $1 FOR EVERY DOLLAR YOU SPEND

 Just as you read it. The idea here is that for every dollar you spend, you save another.

 For example, if you buy a combo from McDonald's that costs $8 (instead of bringing your homemade lunch, which would cost much less), then you should also save $8.

 If your goal is to save money, think of it this way: If you can't afford to save that kind of money, you shouldn't be able to spend it either.

 2. FREEZE YOUR CREDIT

 If you're having trouble keeping track of your credit card usage but don't want to get rid of it, you might want to consider calling your bank and requesting that your line of credit be frozen until further notice.

 This technique can help you save money when you are not very good at resisting temptations.

 3. CREATE A GIFT SPENDING LIMIT

 If you want to save money but love to give gifts, do yourself a favor and create a limit in your budget for all those gifts that you think you will give in the next 12 months.

 4. USE YOUR CREDIT CARD WISELY

 But, remember to pay them in full each month!

 Yes, just as you read it: by using my credit cards to pay most of my expenses (90% or more), I manage to earn a lot of air miles and hotels (which allow me to save money on trips) and also cash-back.

Basically, I have become the worst customer of a bank: they give me money for the use of my cards, and I never pay interest.

 5. CALCULATE WHAT YOU SPEND PER HOUR WORKED

 In the case that you earn $5 dollars an hour and you want to buy a dress for $50 dollars, it means that the dress will be costing you 10 hours of work.

 Are you willing to work 10 hours for a dress, or do you think there are better things you could spend your work time on?