Sunday, June 28, 2009

How to save money part one

Introduction to how to save money part one

This is the first part of how to save money. How to save money is a question that everyone has been asking, since the existence of money. Money is a limited commodity, and such a useful commodity. Learning how to save money ensures that this precious commodity lasts longer, and can serve us longer.

The ancient merchants traveling the Silk Road, asked how to save money for their purchases in foreign lands, and then how to make money from the goods they brought home after traveling thousands of miles.

How to save money in fact does not end when we learn how to save money. There are many related topics on how to save money. When you learn how to save money from electricity usage, you have to learn how to save money from grocery. You have to learn how to save money from airlines when you plan to travel.

How to save money part one consists of many subheadings. The first subheading is teaching children how to save money. How to save money is not textbook knowledge. How to save money is actually a habit that parents can help their kids to cultivate.

The second subheading is how to save money on electricity. Electricity is an essential part of our life. While we cannot live without electricity, that does not mean that we cannot save money on electricity.

Teaching Children how to save money


How to save money actually starts from young. Parents can cultivate the habit of saving money in their children. Parents have to explain to their children why saving money is important, and how to save money from the pocket money they received.

It is better to learn how to save money from a young and tender age, so that they can avoid getting into debt, and learn the importance of saving money the hard way. The knowledge of how to save money is one of the best gifts a parent can give to children. The knowledge of how to save money benefits a person for life.

Acquiring the skill of how to save money is painful at first. As with all useful skills, learning how to save money needs a lot of practice.

Parents have to set an example. Parents can make use of every occasion to teach the children how to save money. Parents have to show their children that they know how to save money. It is no use teaching children what they do not know, and cannot follow. If parents are always over-spending, how on earth can they expect their children to learn how to save money?

When parents face an emergency, that requires spending a huge sum of money. That is the opportunity to tell children why saving money is so important. Saving money is important, so that when it is time to spend money, there is a nice tidy sum of money in the bank.

When parents are doing grocery shopping, and come across items on sale, it is an opportunity to teach children how to save money. Parents can treat this as mathematics lesson too.

For example, the usual price of a product is $2.50. At the sale, the product is selling at $2. The savings is fifty cents for buying one of this product. If the buyer buys a few of the products, the savings increase. The buyer will save $5 if he buys ten of this product.

Based on the principle of pay yourself first, parents can teach children to save their pocket money before they spend a single cent of it.

How to save money starts from saving a part of the pocket money. Once the children learn to pay themselves first, they will not feel guilty for spending the pocket money.

You can help your children plan a budget. You have to teach your children to spend within their budgets. If the children love to eat two food items, then they should spend money buying the cheaper one, and not the more expensive food item. You have to teach your children to buy things when they are on sale. When the other food item is on sale, and the price is lower, they can buy the food item.

The same concept applies to all aspect of their lives. For example, children love to play. They love to have many toys. Buying new toys from the departmental stores is expensive. You can teach the children to buy used toys from the garage sales. Even though your children do not like old toys as much as new toys, do tell them that they save money on old toys, so that they can buy more toys in the future.

Teaching children how to save money also means you have to explain the concept of compounding interests. Money can grow through compounding interest. Do explain the concept using simple English.

You can say that money can have children. When your children save $1 in the bank, a year later, this $1 becomes $1.02. The two cents is the children of the $1. Make up a story about it. Shows that $1 is the big mother bear, and big mother bear wants many children. Every year, big mother bear will give birth to children. If your children spend the $1, then they kill the big mother bear, and there are no more children.

Teaching children how to save money is a marathon. You cannot expect the children to cultivate the habit of saving money, and know how to save money in every way. Learning how to save money is a life-long lesson, while the habit of saving money benefits them for life.

So parents, do clean up your financial mess, and learn how to save money. Once your friends and neighbors praise you for having the knowledge of how to save money, your children will feel proud of you, and want to know as much as how to save money as you did.

How to save money on electricity

Electricity is so important to our lives. Without electricity, most of us do not know how to live. Imagine the shopping mall without electricity. Imagine the office without electricity, there is no way that most of us can work without electricity.

Even though electricity is so important, that we cannot live without it. It does not mean that we cannot save on electricity. How to save money on electricity relies on us learning to cut down on unnecessary usage of electricity.

You can learn how to save money on electricity by evaluating the electricity consumption for each electrical appliance in your house.

Are all the light bulbs in your house belong to the energy saving type? Can you change all the light bulbs to the energy saving type? By doing so, you are learning how to save money on electricity.

How old is your air conditioner or heater? Are they old and noisy? If so, they are consuming more electricity than the newer, more energy efficient models. If you do without the heater or air conditioner, you are saving money on electricity. If you cannot do without them, do consider switching to a newer model. You need to spend money to buy new product, but in the long run, you are saving money on the electricity.

Learning how to save money on electricity requires you have to examine yourself, and see what are the electrical appliances that you can do without. Do you really need to have the cloth dryer and dishwasher? Can you dry the clothes naturally, on the clothes liner? Can you hand wash the dirty plates and cups?

By selling away all the underutilized electrical appliances, you can save money on electricity. You learn how to save money on electricity while simplifying your life.

You can learn how to save money on electricity by changing your waking hours and sleeping hours. Do sleep early at night, and wake up early in the morning. When you sleep early at night, you are using less electricity, since you do not need to switch on the lights for a few more hours. When you wake up early in the morning, you are making use of natural lights to lighten up the house, and that is free of charge.

You will be surprised to learn that going to bed an hour or two hours earlier, can lower your electricity cost. The cost savings in a year is quite a lot of money.

You can learn how to save money on electricity by selecting the electrical appliance that uses the least electricity while performing the same function. For example, instead of switching on the sound systems to enjoy the music, you can use the ipod. That is a huge cost saver, while allowing you to enjoy music.


Learn how to save money on electricity by buying lesser electrical appliances. To be honest, you are not able to make use of every electrical appliance you buy. How many times have you use the steamboat cooker? How many times have you used the rice cooker and steamer? If you hardly cook, it is more likely that you use the microwave more than rice cooker or steamer.

You can learn how to save money on electricity by not toasting the bread everyday. Bread does taste nice, even without the toasting.

You can learn how to save money on electricity by buying clothes that do not need ironing. Choose those winkles free material, and buy more of those. You will save time and money by not having to iron every single garment you wear.

You can learn how to save money on electricity by not using the vacuum cleaner every day. You can use a broom to sweep the floor on some days, and use vacuum cleaner for other days. By cutting down on the usage of vacuum cleaner, you are saving money on electricity.

Learn how to save money on electricity by switching off all electrical appliances when not in use. Cut off the power supply completely, do not put them on standby mode. Assuming you spend only two hours a day watching the TV, you do not need to put the TV on standby for another twenty-two hours in a day. You are wasting electricity and wasting money if you do so.

Learn how to save money on electricity by enjoying life without TV or computer for an evening or two per week.

You do not need to switch on the TV and computer to have a good time. You can gather your family members and enjoy broad game for a few hours. Playing broad game improves family bonding, and save electricity usage. You can have another quiet evening with books. Gather your family together, and read. Share the quiet times together. Reading is still the best learning method, and one of the cheapest hobby (provided you do not buy the books).

How to save money on electricity is not a difficult thing to do. It does require conscious effort at first. Once you get use to the simple lifestyle, you will learn that enjoying life is possible without heavy reliance on electrical appliances.

Conclusion to how to save money part one

How to save money is a skill. How to save money is more than knowledge. The knowledge of how to save money does not benefit you if you do not put into practice.

Do acquire the skill of how to save money in every aspect of your life. I will continue to learn how to save money and share them with you. After all, I benefited from my research of how to save money too.

Do learn how to save money together with your family members. A family member that does not know how to save money can jack up the electricity bill, and causes financial problem for the whole family.

Do teach the children the value of money, and teach them how to save money from an early age. As early as possible. As early as they can recognize the coins as money.

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