How to save money by using the

principles of economics

Prepared By: Supervised By:

 Srosht Hikmet Dr. Wa'el Abdul-Bari Hussien
 Diyar jasim
 Jasim Ahmed
 Abdullah Musadiq
 Contents:

Introduction
Strategies to save money
Why to save money?
What’s the most profitable way to save money
 Advantages & Disadvantages
Conclusion
 Introduction
Most people around the world do not know how to deal with money. The
number of people in serious debt has never bee higher, with many teenagers
and adults seriously clueless about the most basic financial knowledge.
One of the alternatives to face financial problems is to save money. Saving
money is neither a science nor an art; rather it is somewhere in between
and requires your commitment and hard work, Saving money takes time to
develop, needs to be learnt, and brings benefits that will endure for the
rest of your life.
 Strategies to save money
1. Set saving goals:

• Short-term goals: it is easy, If you want to buy a video game, find out
how much it costs.
• Long-term goals: it is not so easy, such as retirement you’ll need to do a
lot more planning and you'll also need to figure out how investments will
help you achieve your goals.
 2. Establish a timeframe:

• For example: I want to be able to buy a house two years from today.
• Set a particular date for accomplishing shorter term goals, and make
sure the goal is possible during that time period.
• If it's not possible, you'll just get discouraged.
 3. Figure out how much:

• Figure out how much you’ll have to save per week, per month, etc.
• Take each thing you want to save for and figure out how much you need
to start saving now.
• If it is not realistic goal, so adjust your timeframe until you come up with
a possible amount.
 4. Keep a record:

• Keep a record of your expenses.

• What you save, how much you make and how much you spend.
• It's wise to take a critical look at your expenses.
 Why to save money?

Money has a very important role in life. You use savings accounts for practical
reasons like (Emergencies happen, unstable economy, student loans sfter
gradution, more leisure spending later), or any thing that you want.
 What’s the most profitable way to
save money
• Learn to budget and understand your finances
• Get out of debt
• Create a designated savings account
• Automate your savings
• Automate your bills
• Put a spending limit on your card
• Use the envelope budgeting system
 Advantages & Disadvantages
Advantages: Disdvantages:

• Buy goods as needed and pay • Buy what you can't afford

gradually • Increased impulse buying

• Creates a record of purchases
• Interest charges mean higher cost o
• Emergencies
items
• Level out 'peaks' and 'valleys' in
income and expenses • Can be thought of as increased income

• Convenience • If you lose track of how much bought on

• Less to carry around credit, financial trouble could occur.
 Conclusion

• Self-discipline & Self-Control: Budget, Priorities, Savings Plan, Manage

Your Savings, Living Within Your Means.
• Avoid unnecessary expenditure by distinguishing between needs and
wants
• Aiming to spend less always, review all your expenses periodically
 THANK YOU

Save Today. Safe Tomorrow