Saving requires us to not get things now so that we can get bigger ones later. We should consider savings as investments and a form of insurance.
Every human being needs to save, whether it’s for a short term or a long-term purpose. Consider yourself well off if you follow these tips on how to save more.
Pay yourself first.
This means you need to save first and spend later. The mantra goes as spend what you have left after saving and not save what you have left after spending.
As a matter of fact, and going with past experiences, when you decide to spend first, you might end up having nothing left to save.
Make sure your first priority is taken care of: YOU.
Well if you don’t consider saving for yourself first, then you are actually saving for nothing.
Have your budget right before thinking of what to save.
Budgeting is planning. You set your priorities right and then decide on which one to execute first and maybe which one to forgo.
Have a realistic budget. Follow it strictly but make it flexible to make necessary adjustments when pushed to the wall.
Plan to save.
In order to save, have the idea in mind, or else, you’ll end up postponing the idea each time you are faced with difficulties.
Your budget is now the manual you will use to plan. Considering the budget, you have, you won’t want to go beyond your capabilities, be realistic.
A 10-15 percent savings of your salary won’t be bad if you earn good money and at the same time, your budget allows you to.
What are you saving for? Have a goal, purpose
When planning to save, you will have an idea or a reason why you want or have to save. The purpose of what you want to save for and how much you want to save for it.
You can have more than one goal for saving, but each time you think of saving, remember you have a budget that you follow strictly.
Have a savings account
Here is where the real saving deal comes in. Obviously, we are not talking about the traditional modes of saving where you would place the money under the pillow, or bed or in an enclosed jar that is set to be crashed whenever they get full.
When choosing a savings account, consider the following;
Keep money away from yourself.
“Money looks better in the bank than on your feet.”
Invest the money in a business or company that requires a contract and long processing requests in order to gain monetary access. This might make you rethink before making a move.
Consider having an investment advisor in the company, who would sway you against making quick withdrawals
This will help you avoid using the saved money.
Use your partner.
If in case you have a partner that is trustworthy and has been good in saving, hand them the task. This is good since that partner will only give you access to the money at the required time.
Make savings automatic.
Some banks have automated transfers from the checking to the savings account.
Having this will enable to only focus on spending the money on your check and even forget your saved ones.
Before you decide to start saving, make sure you have your debts all cleared. Debts are prone to interests which might end up accruing if defaulted and might start eating up into your savings account.
Clear your debts first, then start saving.
You need a financial expert.
There is no better financial expert than Amana capital Kenya. Visit their website as they will take you through your financial journey and propel you towards success. Go through their free online course branded 7Steps to Wealth.