If you want a bright future with financial freedom then saving money is a must for you. It’s true that money can’t buy you happiness but in troublesome time it helps a lot. With disciplined savings you can accumulate lots of capital in few years. Here are some tips that will educate you how to save money for future.

Track your expense

The first step of savings is reducing your expenses as much as possible. Make a list for your expenses and track each and every expense, include small expenses too. After end of the month revise this list and check where you could have saved in the future. A clear understanding of your expense can make you save a lot of money.

Make a budget

After having clear understanding of your expenses the next task is to make a budget. Try to make a budget with ¾ of your earning and keep ¼ as saving. At the beginning of the month keep your ¼ earning in a box and only spend it on emergency. If you have trouble with overspending than you can try envelope budget system.

Trim unnecessary expenses

After doing some basic calculation it is time to trim the unnecessary expenses. If you spend your money unadventurously you can save a good amount of money. Always pay your bills on time, use cash for purchase, and use credit card as less as possible. Try home cook meal to save restaurant expenses, use public commute or bicycle to save gas, and turn off electricity appliances when not needed to save electricity bill. All of these small saving habits can accumulate lots of money over time.

Pick the right tools

You need to use right financial tools to save your money and let it grow at same time. For short-term savings use savings account and Certificate of deposit (CD). For long-term savings use 401(k) s, 529 saving plans, mutual funds or FDIC-insured individual retirement accounts (IRAs). You can also invest in bond, securities and stocks; however most securities are not insured by the FDIC. They are subject to investment risks and not guaranteed by a bank.

Diversify your investment

If you want to safeguard your hardly earned money from economic volatility, than diversify it in different investment stream. Invest some money in gold, real estate, and other savings. They are more resilient from market volatility, and usually their market value goes up over year. However liquidate these investments may take time. So these are only long term investment that you make for future.

Saving money for the future is a wise idea, but to do so you don’t have to make your present miserable. Spend your money wisely and enjoy the things you love. A good balance of saving and expenditure is required to have a fun filled life.