Saving is income not spent. Everyone knows it’s smart to save money in the long run, but many of us still have difficulty doing it. There’s more to saving than simply spending less money, although this alone can be challenging. It differs from savings. Saving is closely related to physical investment, in that the former provides a source of funds for the latter. However, increased saving does not always correspond to increased investment, if saving falls below investment, it can lead to a growth of aggregate demand and an economic boom.
The easiest way to save money is to make sure that you never get a chance to spend the money in the first place. Basically, you save automatically and the money you keep each month is yours to spend as you please. Next you will have to avoid accumulating new debt. You know- It’s a lot easier to save if you know you have something to save for. So try to set reasonable savings goals. You can also set an ambitious but reasonable time frame just to achieve your goal.