Last Updated on May 21, 2021 by MoneyVisual
Saving money may sound easy but starting to save is another tale. You can start saving by all means if you want to. But the question is, how long can you keep the art of saving? Some people may practice saving today but suddenly stop in the long run for some reason.
Most of them blame income inequality. Maybe because they experience difficulty in keeping finances from their insufficient wages. With all the bills to pay and the high cost of living, funds may really get scarce at times.
Another factor is the poor management of money. Some people lack discipline in spending habits with or without knowing that impulsive buying can be more dangerous than they expected. Or maybe some people just don’t find saving style helpful at all.
Well, if you look on the brighter side of saving, you’ll probably get enlightened by all the benefits you’ll be receiving in the future. Benefits that you didn’t know can absolutely help you when things go wrong and come up all of a sudden. If you are having trouble with your saving style, then here’s how you can learn to improve that habit.
1. Make a Budget Plan.
Budget planning is urgent. Especially when you start to build your own family, raise your kids, and of course send them to school. Well education, today, sounds really pricey. Also, if you include all your bills at home, groceries, shopping sprees, travel costs, and all that; making a budget plan can be a serious challenge.
How to Make a Budget Plan?
Step 1. Identify your monthly income. Always remember to spend less than the amount you earn for a month.
Step 2. Make a list of important and less important expenditures. Separate the list of needs (basic commodities, medical support, educational expenses) from the list of wants (something that you or our family members desire but may not be easy to obtain). After that, you have to focus on the list of needs alone. Keep in mind that you can have all your desires in the future, only if you learn to spend lightly.
Step 3. Create a breakdown of your monthly budget. Do not forget to save the rest/unused money.
Step 4. Keep all the receipts. These will help you compute liquidations easily and accurately.
You may like to Read: How to Manage Your Budget with Fluctuating Income
2. Compute Your Expenses.
You may notice a lot of shoppers consider calculators as their best shopping partner. Before you go to the market, make it a point to bring your budget plan for food and other personal or kitchen stuff. Every item you add on your pushcart must be recorded and calculated before you reach the counter zone.
You can buy all the necessary but do not forget to rely on the amount of money you are allowed to pull out. If you plan to spend a hundred bucks, then you can only spend the same amount or less. Remember, spending less than what you planned for is always a wise move.
3. Think of Something to Save For.
It’s a common idea that the reason why people save is that they have a long list of everything they plan to save and spend for. Those things are what you call “goals”. Truth is, if you want to reach your goals, you start pursuing and striving hard to get them with both hands. Just like in saving. You save because you want to fulfill your goals.
From a kid saving pennies to buy himself with his favorite cookie to a grown-up man saving his salaries to buy his family needs and luxuries and invest for the family’s future. Everyone saves for their goals because these goals drive them to.
4. Save with the Right Bank.
You’re not in the 1970s anymore. With the advent of technology today, many options are now available for opening a savings account.
Why do People Save Money in the Bank?
Basically, people save their money in the bank to avail privileges like account security, money growth or interest earnings, and some exciting perks/rewards (depending on the bank). In this era, choose a bank that offers an online savings account. Parenthood isn’t easy.
As parents, you have an endless schedule of to do’s for a day, for a week, and even for a month. Good news, there’s online banking available. With this advent, you can easily monitor your account status anytime you want. Thus, you’ll be free from any hassle of waiting on the line.
5. Make Wise Investments.
Making investments can be beneficial in saving for the future of the whole family. You do not have access to anyone’s life. Hence, it’s always good to get secured as early as your age today. You don’t wait to grow your hair white before starting to make wise investments. There are lots of life insurance companies that you can write on the list.
However, you have to be very careful in choosing the right one. It’s wise to consider what the company has to offer like benefits, rewards, great price and interest, and wider coverage. Of course, you don’t invest for yourself alone, therefore consider companies that include perks for beneficiaries.
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By: Sarah Contreras
The author holds a bachelor’s degree in Communication with expertise in certain fields like advertising and media marketing. She currently works as a web content contributor for Insure Me Now, an award-winning life insurance company in Australia. What motivates Sarah to keep writing is her passion for providing information to all readers out there.