Everyone wishes to save money for a rainy day. You could save money by being serious about it. You may avoid enjoying your weekly $4 mocha latte or postpone a family vacation in an exotic destination. You have to prioritize your goals and aspirations if you wish to save money in the long run. Here are some effective money-saving and money lending tips from financial gurus that could be used in your daily way of life to ensure future financial stability and security.

You could go about saving some money only if you can successfully eliminate your debts. You need to determine the total amount you are spending every month in terms of debt interests and monthly repayments. Every month you are spending a substantial amount on servicing your debts. Once you get freedom from the vicious cycle of debt, you could divert the interest amount towards your savings account.

One of the most effective ways of saving money is simply by understanding precisely why you need to do money-saving. If you require some motivation or inspiration, it is a good idea to set high saving targets accompanied by a specific timeline for making it relatively simpler to save. Are you looking to purchase a house in a couple of years with a 20% down payment? Once you have an objective to obtain or a target to achieve, you have to know effective ways of saving money to fulfill your objectives.

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It is a good idea to quit smoking to safeguard you against many serious health hazards. However, it is not an easy task to quit smoking overnight. But if you are smoking a packet and a half of cigarettes daily, it could mean almost $3000 every year in terms of savings provided you quit.

Instead of spending a few thousand dollars on your overseas airline tickets, you could think in terms of a staycation. You could stay at home and enjoy a fun-filled vacation in your backyard or thrilling vacations at destinations that are close to your house. You could opt for affordable flights if the destination is not that close enough to drive and cover the distance.

We know that utility costs hardly ever go down hence; you need to necessarily weatherize your house. You may consult with a utility company and get an energy audit done. You need to identify a certified contractor who could evaluate and give you a review of your overall home energy efficiency. This should be ranging from certain easy improvements such as installing siding, high-efficiency appliances, new insulation, or sealing doors and windows, etc. You have the potential of saving thousands in terms of utility costs and energy bills over time.

It is best to quit the habit of buying lunch every day while at work. The idea is to save money by identifying everyday savings. Suppose purchasing lunch in the office costs you $7, you could switch to bringing food from home that costs you $2. This way, during the entire year, you could set aside $1250 as your emergency fund or you could make a substantial contribution to your retirement fund, or college plan.

Are you paying $20 per week for snacks and soda at your office’s vending machine? That would be amounting to $1000 you are taking out from your annual budget for snacks and soda only. Once you do all those calculations, you realize that this proves to be a costly habit.

As per https://bettermoneyhabits.bankofamerica.com, you must consider reviewing your budget and examining your progress consistently. This should assist you in firmly sticking to your savings plan. Moreover, when you constantly monitor your savings plan, you could spot and fix issues quickly. If the follow the simple money-saving tips discussed here, you would be inspired to go on saving more money and hitting your goals quickly.

As per a Finder.com analysis Americans owe trillions of dollars in terms of mortgages, student loans, credit card payments, and more. Moreover, it is a fact that over $184 billion are borrowed from family and friends in the United States. If you were to help a friend or relative by lending some money to him during a financial crisis, follow the money lending guidelines below.

Even though relatives must not treat one another as a bank, it is a good idea to consider lending only after fulfilling the formalities of a written agreement. A promissory note or written agreement could include all details relating to the terms that include a repayment schedule, amount borrowed, and the specific circumstances when the lender may allow loan forgiveness. The agreement may include the consequences of not paying back the money. You may consider getting it notarized for making the contract more enforceable. To learn more about perfect lending solutions, you could visit reputed sites such as https://www.libertylending.com/.

Is the borrower going to pay you back in installments or one lump sum? Would you expect to be repaid within a year or a couple of years? Are you looking for check or cash payment? All these details must be included in the agreement to rule out any misunderstanding or confusion later on. Consider structuring the terms as precisely as possible.

If someone has asked you for a sizable amount of money as a loan, it is a good idea to discuss with your spouse and seek her advice. If she or he disagrees with your decision to give a loan to the distressed relative or friend, it is best to respect her or his opinion on this matter. You would not like to encounter stressful conversations in the long run.

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You must not respond to loan requests of your family or friends by taking out money from your secured retirement fund. That would prove to be a huge mistake. If by lending some money to someone, it hurts you, it is evident that you are not having the money to lend. You should not feel bad or awkward to refuse a loan to a friend or family if you think that you do not have any spare amount that could be diverted to them.

You must follow the simple money management tips discussed above. Always think twice before deciding to lend money to someone. Never jeopardize your financial health by spending or lending without analyzing your overall financial condition.

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