Are you having difficulty or unsure about how to save money? Don’t stress it; these issues are not unique to you. Saving money does not have to do with how much you are making, or else we would always have excuses not to save. No-matter the amount you make, it is important to intentionally practise financial planning by saving a portion of your salary or income, as it prepares you for a strong financial future. In this article, you will learn six (6) smart ways you can save:
- Determine your targets and goals: Spend some time to think about how much you are willing set aside monthly and be realistic to leave room to cater for other unexpected expenditures. Whilst thinking, have an idea about what exactly you are saving for, for instance, to buy an asset, for a vacation, to buy a house, education etc. Setting long-term goals drives you to be disciplined and consistent in the journey.
- Set your priorities and Timelines: Research has shown that single savings goals increase the probability of the target being met. Make a list of preferences and select two or three things you wish to accomplish within a timeline on each goal.
- Open a separate savings account: This account is separate from your usual bank account as it is specifically to help you save and invest; it must have a withdrawal requirement to have access to it annually or semi-annually. This account should provide you the best returns for your savings.
- Create an automatic Bill Payment: With the automatic payment plan, you can place a standing order with the bank for a stipulated amount to be moved to your other account as your salary is received. This monthly bill is recurrently charged to card on a pres-set date, without you having to do anything. This saves you the stress of going to the bank or even changing your mind.
- Track your expenditure: It is crucial to take intentional steps to reduce unnecessary spending per month. Take a look at your bank statement that will give you an idea of expenses that could be avoidable. You can take intentional steps by leaving your ATM card at home sometimes, shopping with a list, reduce your visit to the supermarket, eating out less, go cashless etc.
- Use consequences and reward system: Creating and attaching a consequence and reward can be a great motivation to spend wisely and also de-motivate you to wasteful spending. An accountability partner can also help to make sure you are consistent and that you follow a disciplined plan.
Hope the article was helpful, are there other smart saving techniques you know? Feel free to share with us. Thanks.