Money is hard to earn yet easy to lose. Young professionals, in particular, often want to have it all. Once they earn a fair amount of money, they want to buy a new car, build a fancy house, and get the latest high-tech gadgets. However, saving money is an essential part of a sound financial philosophy. Saving money allows you to meet not only your short-term financial obligations but also prepares you for future expenditures. These may include housing loans, car loans, insurance payments, and educational plans. Parents, in particular, need to have an efficient way of saving money to be able to meet the daily financial obligations that family life entails. Here are nine tips that can help you save money:

• Fix short-term and long- term financial objectives. Separate short term expenses such as daily costs of living from long term expenses such as housing loans and car payments. Fix the period of time and amount of money needed to fulfill these obligations, especially the long-term ones.
• Create a budget. Write down a list of your weekly expenses and determine the amount of money needed to meet these obligations. Your weekly expenses may include: rental payments, transportation expenses, utilities, food, clothing, and miscellaneous expenses. You can also write down medical expenses, school expenses, and credit card payments. Create another list and write down your weekly income. These two lists will help you determine your budget. Another way of creating a budget is to divide your expenditures into three categories: fixed, variable, and flexible. Fixed expenditures include mortgage and rent payments. Variable expenditures are expenditures that you can regulate such as electricity, water, and food. Flexible expenditures are based on personal habits and preferences such as expenses on entertainment, cigarettes, and alcohol. Based on these types of expenditures and your income, try to determine the best way to budget your money.
• Create a separate savings account. Create a separate savings account from your normal checking account. Creating a separate savings account is a good way to save money for future expenses and also allows your balance to increase. If you are forced to withdraw from your savings because of emergencies, consider these withdrawals as loans and try to create a schedule of repayment.
• Fix a percentage of your gross income for savings. Jeremy Vohwinkle, a financial planning expert, recommends that 10% of your gross income should be initially set apart for savings. If you find 10% too expensive for savings purposes, Vohwinkle recommends that 8% or 5% of your gross income should be set aside for savings. He also suggests that your employer or your spouse's employer deduct a fixed amount from your paycheck each pay period and directly deposit it into your savings account.
• Divert extra cash into your savings account. Diverting extra income into your savings is a sound practice that adds money to your savings account while helping you meet future expenses. Sources of extra income include: bonuses, salary increases, tax refunds, rebates, overtime pay, and income from home businesses.
• Be wary of credit card offers. The interest rates of credit card offers are often high and may hamper your financial ability to get a car or housing loan. If you are just starting out, a transaction card which allows you to withdraw your own money is a good alternative to credit cards.
• Choose wisely in buying a car. Buy a car that is not too expensive and avoid getting a car loan that is beyond your financial capabilities. You should also consider buying a second hand car with low mileage that has good value for your money. Set a specific time on when you plan to completely pay off a car loan.
• Buy a house with that is a potential source of income. An older or smaller house that can be refurbished and that you can add value to enables you to accumulate building equity. Luxury houses that have complete features have little room for improvement and need expensive mortgage payments to maintain. Buying a house that can be improved increases equity and value which you can trade up in the near future with a bigger deposit.
• Consult with the experts before getting a home loan. Try to ask different lenders before getting a home loan. A loan that is 0.5 per cent cheaper per annum is good enough for starters. Once you acquire a home loan, try to gradually reduce it by making extra payments per month. This will help you save money in the long run.

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