Learning the friendly way

Cryptography is the process of converting messages into unreadable text so that only the intended recipient will be able to read them. Cryptography is responsible for the security, anonymity, and trust less transactions of digital currency. – entirely without the services of a financial institution.

We'll define cryptography as the study of methods to exchange sensitive information over an insecure channel in such away that only authorized parties can access it. In our case, this will be exchanging ownership of cryptocurrencies (which is represented digitally), or transferring ownership by signing digital messages.

A bit of history:

Cryptography dates back to the time when people began exchanging messages in forms other than face-to-face conversations(e.g., via written letters). The first known use of cryptography can be traced to Egypt, about 2000 years ago, during the reign of Pharaoh Thutmose III. Other known historical uses of cryptography are in the works of Julius Caesar, who used a simple cipher for messages between him and his generals.

The purpose of cryptography in crypto

A blockchain-based cryptocurrency needs some form of encryption to secure its money supply from being stolen by hackers or malicious software. It also allows for the anonymous transfer of funds between individuals without requiring a trusted third party, such as a bank or government institution. Cryptocurrencies are entirely based on cryptographic ideas.

Compared to cash transfers, cryptocurrencies do have another layer of security built into the blockchain: cryptography. The purpose of which is to validate transactions and prevent unauthorized access to the ledger by keeping all information inside a digital file that only authorized people can see. It's kind of like a physical vault (or safe) where you can keep all your money. But, unlike a physical vault, there's also no way to access the safe without a private key or password.

Usage of cryptography in Cryptocurrency

Cryptography is used in several different components of Bitcoin's security model, as well as in other cryptocurrencies.

Bitcoin addresses, which are used to receive and send funds between people on the blockchain, have both public keys and private keys. Only the owner of an address's private key can spend funds sent to the address, and only the owner of an address's public key will be able to receive them.

Every time you send or receive bitcoins, your transaction is signed with the appropriate digital signature using your private key. Since you can't share your private key with the person receiving your bitcoins, they verify that the signature is correct using your public key. The process of sending and receiving bitcoins between addresses is entirely anonymous and doesn't require any personal information (although there are ways to link transactions to identities).

Cryptocurrencies use public-key cryptography in order to prove ownership of addresses and transactions. This is done with a piece of data known as a digital signature, which is obtained using the sender's private key, and attached to the end of every transaction block along with other information about that block. Each new transaction has its own signature, verifying that the sender owns the address that is being used to send the funds. Since only the owner of a private key can create a digital signature for it, this provides a very strong guarantee that nobody else has sent their cryptocurrency to an address other than the one currently being spent from.

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Building wealth doesn't have to wait until you're settled down and "old". In fact, the sooner you start the better. Whether you want to buy a house one day, or start saving for retirement, starting to generate wealth earlier on will help you achieve these goals sooner.

Your 20’s & 30’s pose an excellent opportunity to build wealth as these years allow you to learn from your mistakes and take risks with a minimal downside (far fewer than if you started this process when you've got a family to support or an upcoming retirement).

There are two important notions to remember: this is not a get-rich-quick scheme, nor does it need to be complicated. Building wealth is more about setting yourself up on the fast but responsible track to wealth in later years.

8 Tips on how to build wealth

Below are 8 tips on how to stay on the straight and narrow when it comes to generating wealth.

1. Create a living expenses budget and stick to it

It might not sound glamorous, but budgeting and saving money is not as bad as you think. Creating a budget for your living expenses (and sticking to it) is one of the surest ways to grow your money in the long term. Explore options like the 50/30/20 rule or 70/20/20 rule to establish what to spend on needs, wants, and savings each month and provide frameworks that allow you to save more money.

Living on a budget doesn't mean skimping on luxuries, it simply means managing spending money on luxuries and not overspending. It also trains us not to live paycheck to paycheck and instead determine exactly what we are spending our money on and ultimately save more money for the things we want to do in life (like buy a house or build a healthy retirement fund).

Financial independence takes work but is not entirely out of reach for anyone. One needs to start building a financial plan today in order to accumulate wealth further down the line.

2. Start eradicating your debt (from credit card debt to student loan debt)

Prioritise paying off your debt and living within your means in order to build your personal capital. Of course, sometimes debt is unavoidable, but bouncing back is imperative to building wealth down the line. Consider saving up to pay off your debt before using those savings for investments.

The 20/10 rule stipulates that you use a maximum of 20% of your annual net income on consumer debt, while each month you use no more than 10% of your net monthly income to pay off this debt. Ideally, stay away from consumer debt entirely and prioritize paying off anything you owe so that you can have more money in the long run.

3. Explore the working world

Your 20s are a great time to try new things in the job world. Explore new opportunities and build your experiences to grow your earning potential down the line. Consider each new job experience an opportunity to grow your skill set and increase your earning potential as you ascend the corporate jungle gym.

While a job might not pay more money, the experience it gives you can leverage your next job and result in greater financial success. It also might help you find money-minded friends, a great benefit to have when building wealth and personal capital.

4. Increase your income streams and make more money

While you're gaining experience in the working world consider building multiple income streams through side hustles, your own business or freelance gigs. Not only will this too contribute to a wider skill set, but will also create additional income streams which can be used for investments or holidays. You can build wealth while enjoying life, and additional income streams are the surefire way to do this and achieve financial freedom.

5. Educate yourself on finances

You're more likely to grow financially if you understand finances. Never underestimate the power of being financially literate and having the right money mindset. Use your twenties to read books, articles, and blogs to gain both knowledge and street-smartness to help you navigate your journey to financial freedom.

6. Investing

First, and as a continuation of the point above, do your own research before investing in any asset class. Investing from an early age can have ample benefits (read up on compound interest for one), but doing so without understanding how investments work can have dire consequences. Educate yourself or consult a professional, and start small. You don't need a huge amount of capital to get started.

7. Build an emergency fund

An emergency fund is 3-6 months' worth of living expenses and is a major contributor to financial wellness and laying the right financial foundation for later in life. Emergencies in life are inevitable, whether it be a medical emergency, a family crisis, or a car or house emergency, and an emergency fund is a surefire way of avoiding financial ruin as a result.

Learn more about building an emergency fund in our 7 simple steps to start (and build) your emergency fund article.

8. Get started with your retirement fund

It might not sound sexy, but starting to save for your retirement in your 20s is ideal. Starting to save for retirement when it's right around the corner isn't advised, so why not start now so that it can grow into something substantial by that time? Imagine what two to three decades of retirement savings might look like, compared to a few years.

As always, do your research and start small. You might even find that you can retire much earlier than expected. This is the number one mistake that young people make today.

In Conclusion

There's no time like the present to start considering your financial situation and what you can do now to make it prosper in the years to come. Avoid get-rich-quick schemes and use the time to take educated risks, the earlier you start working on your growing wealth journey, the better.

Even if you're not earning a lot, be diligent and consistent and you will see results. Start building these habits now and you will reap the rewards along the way.

Disclaimer: This article is intended for communication purposes only, you should not consider any such information, opinions, or other material as financial advice.

If you’re thinking about incorporating crypto into your business or looking to better understand how digital currencies are infiltrating the business world, you’ll find everything you need to know on the topic below. Looking at the benefits these digital currencies can provide, as well as the downsides, we are effectively dissecting the concept of cryptocurrency in a traditional business model.

Each day we move into a more digital space, be it from the way we communicate to the way we pay for goods, there is no denying that the direction we’re headed in is digitally dominated. The evolution of money is taking a similar stride, from gold coins to banknotes to electronic transfers, and now, digital currencies.

Since the advent of Bitcoin, the world’s first cryptocurrency, over a decade ago, the world has embraced the new age payment system (even if it was one sector at a time). From early investors and developers to huge corporations, crypto has and continues to, infiltrate the financial sector. The recent Bitcoin futures ETF approval provides a classic example.

Crypto In Business

Since the global pandemic, Bitcoin (and the cryptocurrency industry) has edged itself into both the mainstream media as well as the corporate world. Following global market crashes, Bitcoin rose from the ashes and soared to reach unprecedented highs months later.

Many corporations looked to shift their company reserves from the devaluing US dollar to Bitcoin, instigating a massive wave of institutional involvement. Many big companies, everyone from PayPal to Wholefoods, started accepting (or facilitating the trade of) Bitcoin, and gradually crypto became less of a taboo in the Financial sector.

By the end of 2020, it is estimated that around 2,300 businesses in the United States had started accepting cryptocurrencies, alongside the 17,000 Bitcoin ATMs available across the country. As more businesses create teams to focus on the benefits of implementing cryptocurrency in their business, we’ve outlined the pros and cons of adopting the revolutionary technology.

The Pros Of Crypto In Business

For those not yet familiar with the benefits of crypto, or perhaps what it could do for companies (especially virtual and e-commerce ones), find the advantages that cryptocurrency can bring below:

• Removes The Middleman

The intent behind cryptocurrency creation was to establish a peer-to-peer payment system that circumvents the need for intermediary banks and financial establishments. This direct transactional approach results in diminished fees, quicker processing times, and a reduction in the often protracted paperwork and administrative formalities. Instead of relying on centralized entities, this payment system relies on a distributed network and a transparent, unchangeable ledger for its operational functionality.

• Fast, Secure Settlements‍

The network can facilitate international transactions in under an hour, for a fraction of the cost that fiat transactions cost. Using encrypted means of facilitating transactions, cryptocurrency networks are much more secure than any traditional bank.

• Increased User Engagement And Conversion Rates

The more payment options a company offers, the bigger the net of potential customers and conversion rates. The same is true for a wider range of currencies. By providing more options for customers to choose from, the wider the net of potential profit grows.

• Growth Potential

Change often leads to growth, particularly in saturated, highly competitive markets. Adopting and supporting crypto in business practices puts the company at the forefront of emerging technology, a space many will want to be as the world gets more digital.

• Lower Transaction Fees

Payment networks are notorious for charging high fees when receiving transactions, however, Bitcoin and other cryptocurrencies typically charge a much lower percentage. Tap has recently opened a channel for companies to conduct crypto business activities, and charges as low as 1.00% fees on transactions for business accounts.  

The Cons Of Crypto In Business

Of course, there is always a downside to everything. Below we look at some of the risks associated with incorporating cryptocurrencies in business.

• Volatility

Cryptocurrencies have become synonymous with volatility, as the markets move to match supply and demand. Each market has been known to go through stages of increased price movement, however, analysts remain certain that while short term volatility is imminent, long term growth is on the cards.

• Consider Your Target Market

Not everyone has jumped on the crypto bandwagon so it is best to assess whether your clientele would be interested in such an option. If your business is catered to a predominantly older demographic then perhaps incorporating crypto as a payment option is not the best move.

• Security Is Your Responsibility

In the past, many people have lost their crypto portfolios due to lost private keys or hacks. With cryptocurrency, the onus lies on the holder to maintain adequate security measures in order to ensure the safety of the funds. Thankfully, Tap’s business section bypasses with cold storage of your cryptocurrencies assets and state of the art security.  

Conclusion

After evaluating the advantages and disadvantages of incorporating cryptocurrency into your business, take a moment to determine if this decision aligns with your company's strategic direction. If you're considering integrating this modern payment system into your business operations, consider Tap as your solution to handle your requirements and provide the necessary infrastructure for the implementation of cryptocurrencies in your business.

Since Bitcoin entered the financial landscape in 2009 it has made immense leaps and bounds in becoming the internationally recognised digital currency it is today. Despite the giant progress, crypto still has the potential to further infiltrate many aspects of society, particularly how we travel. 

This unprecedented technology can ultimately revolutionise the way we live our lives. Let’s take a look at how crypto is easing international travel, and how you can use it to your advantage.

Blockchain in travel

Many are familiar with cryptocurrencies, but few are aware that blockchain is the technology behind them. Blockchain technology, in simple terms, is a giant public ledger that stores data in a chronological, immutable manner. Particularly flourishing in supply chain management and the broader tech space, blockchain is also proving to be a useful asset to companies operating in the travel sector. 

With a wide range of options within the sector, from flights to car rental to hotels, blockchain is slowly starting to prove to be a powerful force in each case. Already several companies have adopted the technology and used it to add more streamlined and efficient services to the travel industry. 

For example, a French company, Sandblock is harnessing the technology and allowing travel companies to create their own loyalty tokens to attract and retain customers. These tokens can then be traded for a variety of services (beyond the company that issued them) or exchanged for alternative coins or fiat currencies. 

Another example is a Swiss-based, blockchain based company called Winding Tree which was designed to minimize fees for travelers while reducing costs for service providers. The non-profit company aims to cut out the middleman adding high fees to travelers' bookings and connect travelers directly to the service providers using smart contracts. 

These are just two in a wide range of companies already implementing blockchain technology into their businesses, illustrating the unlimited potential the nascent technology holds. 

Crypto bridges the gap

Like blockchain, cryptocurrencies are too playing an impressive role in easing cross-border travel, with plenty more room for development and better adoption. 

Cryptocurrencies facilitate seamless transactions without having to exchange one currency for another when going abroad. Say you lived in America and were visiting Australia, you wouldn’t need to exchange your US dollars for Australian dollars incurring high exchange fees and company-chosen exchange rates if you could just scan a QR code that automatically accesses funds in your universal crypto wallet.

Top tourist destinations around the world have started embracing cryptocurrencies, with a large amount likely to follow. For example, several destinations in Queensland, Australia, that provide access to the Great Barrier Reef have started implementing crypto payments into their tourist-focused businesses, and the reception has been impressive (see more below). 

El Salvador on the other hand approved Bitcoin as a legal tender in 2021, effectively making it very simple for any crypto-savvy tourist to travel around. One doesn’t even need to take a fiat card with them as all transactions can be completed using their mobile device. If that’s not the future of travel, what is?

Advantages of using crypto to travel

For the sceptics out there we’ve outlined several advantages of using cryptocurrencies when traveling, below. 

• It reduces the chance of theft or money loss
• It eases the booking process
• It allows users to avoid excessive exchange rates and ATM fees
• It minimizes the risk of credit card fraud
• Your smartphone functions as a wallet
• No left-over currency when you leave the country
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Globalisation meets blockchain

With increased awareness around countries and societies around the world, thanks to both mainstream and social media, companies expanding on a global level are becoming more and more common. 

However, this level of globalisation is often plagued with inconsistent means of distributing funds, causing delays, disruptions and unnecessary expenses. Cryptocurrencies and blockchain technology provide the infrastructure to change these difficulties, stablecoins even more so. 

The mobile revolution

According to a recent study, there are 6.37 billion smartphone users around the world, with 80% of the population in possession of one device. This is a significant rise from 2016’s statistics where only 49% of the world owned a smartphone.

Ownership levels are unsurprisingly highest in developed countries like the United States, Germany and the United Kingdom, where on average 80% of the population own a smartphone. Bangladesh, Pakistan and India are among the lowest percentages, with an average of 27% of the country owning one. 

Despite this, 80% of the developing world are still crypto-capable. All that is required is a smartphone and an internet connection. In the future, more local businesses, hotels, and shops in these countries will set up crypto wallets, enabling them to accept global payments in a matter of seconds (depending on the coin of choice).

This is likely to happen faster in the developing world than elsewhere, as demand for convenient and reliable payment solutions is on the rise. Less developed countries like the Bahamas are already catching on. 

An industry on the up

Crypto is easing international travel and contributing to a growing industry. Since the pandemic emerged, travel was put on a back foot but has since experienced a surge as people seek an alternative change of scenery. Now, cryptocurrency is making travel to remote areas, a growing demand, all the more possible.

Of course, government collaboration is paramount. Brisbane Airport in Australia is the first in the world to accept cryptocurrency at 30 merchants. As mentioned above, Queensland itself is a trailblazer in the crypto world. Agnes Water, a town located at the south of the Great Barrier Reef, has more than 40 businesses that accept Bitcoin. This kind of initiative is precisely what is required from governments and businesses for crypto to help grow the travel industry.

Ironing out foreign currency wrinkles

It is clear that crypto has the potential to revolutionise the way we operate around the world. Cryptocurrencies can make travelling easier and more accessible, and bolster tourism industries in developing countries. Solutions offered by several payment-focused cryptocurrencies could very well take over, as more and more tourists demand easier payment options.

Tap a streamlined cryptocurrency platform, is also contributing to the movement by providing a mobile app that facilitates rapid purchasing, trading, and secure storage of cryptocurrencies. For travellers faced with less tech-savvy merchants, Tap provides a Mastercard enabling users to spend supported fiat and cryptocurrencies at 40+  million merchants around the world. 

Much like traditional stock portfolios, crypto portfolios can too be balanced to ensure a spread of returns and risks over the asset class. Building a diversified cryptocurrency portfolio can be done in many ways, however, in this article, we will be exploring a general approach that investors can use to build their own. 

From thoughtful diversification to asset allocation to buying your cryptocurrencies, the road to building a balanced crypto portfolio is not a complicated one. It will require some upkeep though, so be sure to factor in that you will need to balance your portfolio regularly. 

Starting with the basics, a cryptocurrency portfolio is a collection of varied crypto holdings held by an individual (these portfolios hold one asset class, while others can hold multiple asset classes and would require further asset allocation).

Some investors also choose to use a third party tracker which calculates the portfolio’s holdings and profits. A balanced portfolio will have a collection of coins, products and tokens, each with its own risks and rewards.

It should have a mixture of high and low market cap coins and might look something like this: 35% Bitcoin, 10% Ethereum, 25% stablecoins, 15% NFTs, and 15% altcoins (this is an example based on the current climate of the cryptocurrency market and not financial advice).

The 5 main types of cryptocurrencies on the crypto market

Before we start building our portfolios, let’s begin with understanding the 5 main categories that can be found on the cryptocurrency market today.

Most of the 20,000 cryptocurrencies on the market at the moment will fall into these options.

Payment Focused

Consider these the original first-generation cryptocurrencies, starting of course with Bitcoin. Many earlier projects were designed as systems of transferring value, take for example Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH). 

These types of coins typically have a high market cap.

Stablecoins

This category refers to all coins that are pegged to a fiat currency and commodity. These coins naturally bypass any volatility, ensuring a stable anchor in your portfolio and a safe haven for when the markets experience a dip.

While they might seem to represent more traditional assets, stablecoins provide a valuable contribution to the crypto ecosystem.

Examples include PAX Gold (PAXG) which is pegged to the price of gold, while options like Tether (USDT) and USD Coin (USDC) are pegged to the US dollar. 

Utility Tokens

Utility tokens are unique to their ecosystems and generally offer a product or service. This could come in the form of a coin used to pay transaction fees on a network, or a coin created to launch a crowdfunding initiative.

Examples include coins found on dapp and smart contract development platforms, Ethereum (ETH) and Binance Coin (BNB). 

Security Tokens 

Much like the traditional securities in the stock market, security tokens can take on many forms.

These digital forms of traditional securities have been integrated with blockchain technology and span across three categories: equities, debt and a hybrid of debt and equity. This can range from representing a bond issued by a project, equity in a company, or even voting rights. 

Governance Tokens

Governance tokens offer holders voting powers and a share of the project’s revenue. Similar to utility tokens, the value of a governance token directly relates to the success of the underlying project. Examples include Uniswap (UNI) and PancakeSwap (CAKE).

How to build a balanced crypto portfolio

When it comes to building a well balanced crypto portfolio there are plenty of different schools of thought.

These are our top recommendations, however, we encourage you to do your own research and ultimately go with what feels right. 

1. Diversify Risk

Ensure your crypto portfolio has an adequate amount of risk tolerance by incorporating high, medium and low-risk coin options, portioned appropriately.

It’s important to first establish what level of risk you are willing to take, and plan your portfolio accordingly. 

2. Include Stablecoins

While these aren’t associated with wild gains, stablecoins help to provide your portfolio with liquidity and are key to many DeFi dapps.

They also allow traders to quickly and easily exit a position or lock in gains whether in a bear market or a bull market.

3. Monitor The Market

Ensure that you are checking in to see what is happening in the market regularly and adjusting your well balanced crypto portfolio to best manage this.

Crypto markets can still be very volatile, so ensure that your trading decisions reflect what is happening. 

4. Monitor Your Emotions

This might be one of the biggest overseen aspects of trading but ensure that you have a grip on your emotions as they can play an integral part in your decision making.

Fear and greed are strong contenders when it comes to making logical trading decisions, make sure that these are not influencing any of your trades.

Don't let greed interfere, changing potential big gains to huge losses. Things can go terribly wrong when emotions are behind the wheel of trading decisions.

5. DYOR

We cannot stress it enough - always do your own research when exploring engaging with other cryptocurrencies. Never engage in a project that you cannot fully explain to another trader. Crypto involvement requires a substantial amount of due diligence.

While there is value in taking advice from a strong trader, ensure that you do your own vetting of the project before blindly trusting a stranger, this is your own money after all. 

6. Onlycommit what you’re willing to lose

As a golden rule of thumb when it comes to allocating funds, only allocate what you're willing to lose.

If you’ve made trading decisions that are causing you sleepless nights, consider a different approach, and ensure that should something go wrong that you have the financial means to stay standing. Your overall portfolio should be correctly balanced in order to ensure you can have rest-filled nights.

How to use a portfolio tracker

While typically used for short-term and day traders, trackers can also provide value to long term investors. Trackers provide a reliable way of monitoring the performance of your low, medium and high risk assets.

Crypto trackers also allow investors to measure their results across several blockchains and wallets in real-time, allowing one to directly measure the success or losses of their crypto holdings.

Portfolios typically involve holding multiple coins across various blockchains, so finding a compatible and suitable portfolio tracker makes sense.

First, you’ll need to select a good portfolio tracker that best suits your needs. Below we’ve outlined the top crypto portfolio trackers, although it's best to get a feel for the platform before diving in.

For instance, Pionex is better suited to high volume investors while Delta is better suited to beginners. See our selection below of top options on the market at the moment.

• CoinMarketCap
  One of the most used sources of information in the crypto space, CoinMarketCap also provides tracking functionality. Users can enter their coins, what price they were bought at and monitor their progress.
• Pionex
  Favoured to high volume investors, Pionex provides a more advanced option when it comes to tracking your crypto portfolio.
• CoinGecko
  Most commonly known as being a data aggregator, CoinGecko also allows users to track over 1,000 coins across its mobile and desktop crypto trackers.
• Delta
  Delta not only provides a very user-friendly crypto tracker, it also allows users to track a wide range of assets including fiat currencies, stocks, bonds, futures, and ETFs.

Aside from the look and feel, other factors to consider are safety and security, and whether it supports the wallet and coins in which you've allocated resources.

Building your crypto portfolio manually

When you’re ready to start building your well-balanced crypto portfolio, you will need to find a reliable platform and wallet on which to do so.

Ensure you stick to a regulated exchange and that the security behind the wallet you choose is of high standards. 

Tap mobile app offers a secure and convenient platform through which users can buy, sell, trade and store a wide range of cryptocurrencies. Learn more here on our website available on both desktop and mobile devices.

Next, you will need to decide on which coins you'd like to engage with, ensuring that you strategically distribute your capital with appropriate weightings.

Take cues from our Types of Cryptocurrencies above, deciding on how you wish to allocate the coins in order to build a balanced crypto portfolio.

We encourage you to conduct extensive research in this phase: A golden rule of engaging with cryptocurrency is to comprehend what crypto is before allocating any funds to it, as well as to understand each individual coin.

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It's no secret that discussing finances is often considered taboo. Oftentimes, people quickly become uncomfortable when the topic is brought up. But why is talking about money so awkward for most people?

It's because most people are still afraid to discuss about savings openly for a wide variety of reasons from shame, embarrassment, or simply fear of their financial privacy.

However, there are many reasons why saving (and actively building a savings account) is important, and we think that today is a great opportunity to break the stigma around discussing savings openly. Here's what you need to know about starting to save, several ways to save money, and how Tap can help you in your saving quest.

The stats on talking about money

Discussing finances can be an uncomfortable subject for many people, as revealed by a recent survey. In fact, the survey found that over half of respondents, 56%, consider talking about money a taboo topic. Debt emerged as the most controversial financial topic, with 45% of those surveyed expressing discomfort discussing it.

The survey also highlighted that people are more likely to open up about their finances if others do the same. This means that breaking the taboo around money talk can have a positive impact on our financial well-being. By being more transparent about our saving methods, we can help others learn and achieve their own financial goals.

Below are a few ways to get you started with how to save money more efficiently.

How to get started: start saving money

It's never too late to start your savings journey. Whether you're starting your first job, looking to make a down payment on a house, or you're already retired, setting aside money for savings is an important step in building your wealth. Here are a few simple steps to take and ways to save money.

Establish your savings goals

In order to get started, first calculate how much money you need to save each month to reach your financial goals. This will help you determine how much money you need to set aside each paycheck.

Create a budget

The first step is always the most difficult, but it's important to be honest with yourself about your current situation. Review your finances on a regular basis and consider how much you would like to save as well as what that savings goal entails. Build this savings plan to be realistic, making a savings plan you're never going to stick to is only a waste of your time.

If your monthly bills exceed your income, it might be time to make a budget. Look at what you spend on grocery shopping, auto insurance, energy costs or online shopping and see if your monthly budget has room for some cuts. While homeowners insurance and utility bills can't be neglected, consider if there are cheaper alternatives in your area for the things you can afford to cut on - you never know where you might be able to save some extra dollars.

In doing so you are already taking the first step toward your quest to save money.

See where you can cut spending and save money

Take a closer look at your spending habits. Where are you wasting money? Are you eating out too often? Do you have a lot of expensive subscriptions? Once you identify your problem areas, you can start making changes to better save money.

For example, if you're spending too much on eating out or buying lunch, try cooking at home more often. If you have a lot of subscriptions, see if there are any you can live without and consider canceling an expensive subscription service. There are plenty of ways to save money and build wealth, get creative!

Set up a savings account

Next, you can open a savings account and make sure to deposit money into it regularly. This account should be a separate savings account from your checking account so that you're not tempted to spend the money.

You can opt for a saving account programme which allows you to put money in an account that generates extra cash for you, paid out monthly or yearly. The key in this process is to make sure the money is going into savings before you have a chance to spend it.

Also consider putting unexpected income in these accounts, like a tax refund.

Review and adjust

Finally, in your efforts to save money make sure to review your budget regularly and adjust your savings goals as necessary. By following these simple steps, you can start saving money and building your wealth today.

Don't forget to give yourself some breathing room. It's important to have money set aside in an emergency fund, but that doesn't mean you should never spend any of your savings. Indulge in some of your favorite things every once in a while and appreciate all that you've worked for!

Consider paying off credit card debt and building an emergency fund as equally important to building your savings account. If you're making use of passive income generation you could use these earned funds to pay off one of the two. Savings accounts might sound scary but the truth is they're simple, important, and integral to save money.

Here are some of the best saving tips that we think everyone should know:

• Don't wait to start saving money. The more time you give yourself to spend it the greater the temptation will be. Transferring a fixed percentage of your income into savings accounts as soon as you receive it is an excellent way to make sure you're putting some money away as soon as you get paid.  
• If you're always frugal with your money, you'll only be frustrated and won't achieve your savings goals. From time to time, remember to give yourself a little treat!

Closing thoughts

Saving money is something that everyone has to do, and it can be made easier by doing it with others. No matter your situation, there are probably other people around you who know exactly how you feel and with whom you could share advice that could help you both save money more efficiently.

Open that savings account today and start building a better financial future. Whether you cut your monthly bills to make a down payment or save money for your emergency fund or dream vacation, putting money aside for your future is always a good idea.

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