A Simple Idea of Saving

Saving is important for many reasons, such as paying school fees, paying monthly installments, retirement, etc. Basically saving is one tool that an individual can use to smooth consumption over time. Though everyone knows it is important, it seems 'not that easy' to do it. With money in hand, you have the consumption power. More things are suddenly added in your shopping list. Anyway, I am not going to talk about saving in consumer theory. I only would like to provide a simple idea of saving.

Start categorizing items in your consumption bundles into 'wanted' and 'needed'. 'What you want' is generally not equal to 'What you need', although for some items (the want = the need). After categorizing your wish list, try to reduce the consumption of items in the 'want' category bit by a bit, until you could eliminate them all. As you learn doing this, you will find that you have much more money in your bank account than before.

Happy Saving!!!