Home » Advice

Big Plans

Written By: admin on April 10, 2009 No Comment

Saving is one of the activity in which you should set large goals. If you buy a new house and financed it with 30 year loan, calculate interest you will pay on borrowed money and you will find out that you will pay a fortune. To avoid paying large interest, make a household budget and make a plan to save enough every year to repay part of the loan prematurely. Make a realistic goal, for instance that you will repay tha loan and save enough to make it happen. There are three important things to remember when it comes to savings:
– savings plan should be realistic
Divide your expenses in two categories – necessary and unnecessary. It is important to understand that this distinction differs significantly depending on your income, your needs and your savings preferences. Savings should be realistic, but also ambitious in the extent which you can afford.
– make it a permanent activity
The best results can be achieved if savings are a way of life, and not only activity performed when you feel like it. Constantly plan future income and expenses and align it with savings plan.
– have a goal
You can either have a goal to repay a loan, retire early, buying apartment for kids and somebody will save to buy a new TV. Have a tangible goal so that you know what you’re saving for.

Leave a Reply:

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

  Copyright © 2015 Become thrifty and save money