(MENAFN - Muscat Daily) As part of Bank Sohar's Al Mumayaz Savings Scheme 2014 Campaign and the ongoing monthly savings tips that are being provided we bring to you the tip for the month of August.
The tip for the month highlights the importance of listing down daily expenses to identify unnecessary purchases. The exceptional savings resulting from such activity can potentially be the first step towards saving for your child's education and therefore his or her future.
Speaking on this initiative and campaign Munira Abdulnabi Macki DGM of Human Resource & Corporate Support said 'With a long standing commitment towards improving the livelihood of individuals and the community at large Bank Sohar as part of its Al Mumayaz Savings Scheme 2014 aims at providing a wide range of helpful tips on savings and financial management.'
With a focus on thrifty budgeting this month Bank Sohar emphasises that if done carefully and judiciously cost cutting can help maximise efficiency without causing any negative repercussions. By using a proverbial magnifying glass to view spending habits one will not only be able to identify necessary and optional costs but may also discover spending patterns that reveal potential areas of waste for spending cuts. The easiest way to do so is by tracking spending on a daily basis for a month and then eventually determining whether each item is a fixed variable or discretionary expense. For each type of expense there are different tactics that can then be used to try to cut back.
Fixed expenses such as mortgages school loans or rent don't change month to month and are essential. While the financial load of some of these expenses can be reduced to a limited extent on a broader scale there isn't much room for saving. Variable expenses on the other hand are much more flexible. These are expenses that - while necessary - are governed by one's usage; such as groceries utility bills and transportation. In such cases it can be beneficial to make certain concessions such as carpooling for school and work transportation watching TV online instead of a premium cable subscription disabling home land line telephone if it is not being used regularly or even following some of Bank Sohar's earlier tips on energy and water conservation for the purpose of reducing utility bills.
The last of the three are the discretionary expenses those that involve anything based on personal wants such as entertainment hobbies restaurant expenses and more. While these are of course necessary to maintain your lifestyle this category is also the one that provides the largest window for savings.
'While each of these core areas leads to relatively small savings they collectively add up to a much more significant number when put together at the end of a year. When cumulated over a couple of years these savings will go a long way in alleviating the financial load of crucial yet expensive financial obligation later in one's lives such as their child's higher education' concluded Munira.
For additional details on the Al Mumayaz Savings Scheme and the monthly tips please visit Bank Sohar's official website at www.banksohar.net. You can also follow the bank on www.facebook.com/excel.banksohar