Mistakes People Do When Trying To Save Money

It takes a lot of hard work and patience to acquire wealth by saving money, qualities that most people don’t have. Many entrepreneurs aim at a very successful business, some fall off while some go on.

Today the young still fall for getting rich quick pyramid schemes, it’s unfortunate that a good number do not believe in working hard for their money.

Making the commitment to save money for emergencies and other life goals is just a step towards protecting your financial future. However, some mistakes hinder some people from getting their finances on a more secure footing.

When saving try to avoid the following mistakes:

1. Stopping Spending

Stopping spending seems to be the obvious way to save money but some people tend to misunderstand this point. Saving does not require you to stop spending. It requires you to stop spending on non-essential things. Failure to spend on basic needs may attract additional expenses that would have been caught early, turning the saving into a longer-term cost.

2. Not setting a savings goal

The most important thing when it comes to saving is knowing what you want to achieve. Setting goals will help you to know the amount of money you need to save and gives you an amount to strive for.

3. Poor budgeting

Spending your money without a plan can be dangerous. You need to budget your money properly to avoid overspending. Always have a plan on how your money will be shared. Poor budgeting makes it harder to achieve any financial goal.

4. Over limiting yourself

Denying yourself enjoyment makes the entire process painful.  Saving money doesn’t need to be painful although it requires a change in lifestyle depending on how you purchase goods and services. Learning how to reduce the cost of lifestyle works better than cutting it off.

5. Not going for the best savings accounts

One of the worst things you can do is let cash sit around. Suppose your money is in your checking account, not making you money. In that case, it might as well be buried in your backyard. You need to look for high yield savings accounts to keep your money growing.

Saving money can seem daunting at first, and it can also be more complicated than it needs to be. To overcome this challenge, automate your savings by turning them into a habit.

The Money March

Tala Kenya, the largest mobile lender within and without Kenya has been running a campaign to sensitize Kenyans on how to be money conscious, how to save, and how to be disciplined when borrowing money.