Save money without compromising your lifestyle

One of the main reasons people put off savings, apart from self-dicipline of course (by the way this is always a struggle even for the best of us!), is that there is a misconception that saving will impact significantly on your lifestyle.

This doesn't have to be the case!  As you will see below you can save quite significant amounts of money just by making some minor changes.

• Tip 1: Save a dollar of loose change a day: This won't affect your lifestyle to much, and over the years you will have added a small fortune to your savings.

• Tip 2: Pay yourself first and last: At the start of each month put 10 percent of your income into an account you can't touch (as detailed above). At the end of each month put whatever money is left over in the same account. You can even collect your loose change.

• Tip 3: Where to put your savings: Put 10 percent savings in a safe place (eg a normal bank account). If you want to earn more interest in a higher risk fund, use other money.

• Tip 4: Save for specific events: It may be your daughter’s wedding, or a big holiday, or the college fees for your kids. Whatever it is, set up a specific account (no fees) for the event and put your savings into this. This way you won't confuse the money with your normal savings or spending.. Don’t dip into these accounts. Imagine trying to tell your kids you’ve spent all their tuition money on a Chevvy 1969 classic, and that they’re going to be flipping burgers for the rest of their lives. You could try and argue you were doing them a favour as if they went to varsity and did that BA course they’d still be flipping burgers but $40,000 in debt as well.

So there you have it four ways to save money without effecting your lifestyle.  If you have any tips you would like to add, please put them in the comments!

In other news...

Your author has over a week off for Eid holiday.  As long suffering readers of "Your Money Saving Guide" will know, we are based in the Middle East for work.  While the heat can sometimes get a bit to much, we do enjoy the long holidays that we get. 

For the first night of Eid we went to a friends house who lives in a place called West Bay Lagoon.  The lagoon is great for swimming, and the kids (with floatation backpacks because of the current and the depth went out swimming).  We also brought some blow up chairs so we could float in the water.  Your editor went out into the middle of the lagoon, and just as he reached the half way point (about 200m out) he heard air leaking out of the blow up chair!  The valve had come out.  He had no choice but to jump into the water and start blowing it up.  During which time, large fish (about three feet long) kept bumping into his legs in the murky water...needless to say, it wasn't the best experience! 

For the rest of the Eid holiday we are planning on going to a new water park that has opened up in Doha, and we will try and do a few trips into the Desert.  We will put some photos up of the trips.

Once the Eid holiday finishes we are straight back into the routine.  The kids are going to a Private British school, which is good but starts at 7am which is on the early side!  Especially when you have to travel to get there!  Oh well, it is all worth it for a good education.

Cheers

Rusty O'Connor