If saving money is not a habit you practice on a regular basis, you might find the thought of it a bit overwhelming. This is true if you spend all of your money before receiving the next paycheck. However, it is important to always save at least a little amount to secure your financial future, no matter how much you are currently earning.
1). Stick To A Budget
Let’s face it! Living on a budget can feel like someone is dictating to you what you can or can’t do with your money. Contrary to this belief by most people, budgeting gives you control over your money. If you fail to plan that ‘meagre’ salary you’re already planning to fail at saving money.
2). Don’t Negotiate Savings
You should ‘ Pay Yourself First’. It sounds simple but majority of people do not practise this. Some people have a Savings plan that makes it easy to discontinue when they first implement. They tell themselves, “I’ll apportion every expense first and save if I have any money left.” The truth is, you rarely have money left after you’ve done your expenses.
Savings becomes possible when it’s the first thing you do after you receive your paycheck. When you treat it as a ‘Bill’ you owe every month it becomes a non-negotiable practice.
3). Cut down on some Unnecessary Spending
If after you’ve tried the first and second tricks and still no result, you may need to cut down on some expenses. Go back to your budget and see which expenses can be reduced or removed.
This can mean canceling your TV subscription, Netflix, Gym membership that you are not using, migrating to a cheaper call or Internet rate, spending less on entertainment or restaurant bills, etc. This might seem painful but it’s worth the extra amount that will go into your savings account.
4). Put Those Unexpected Money Into Savings
Cash gifts or surprises, office bonuses, income from overtime jobs, refunds are extra income you didn’t plan for. You can put them (maybe not all) into your savings account.
While we were young, our aunts and uncles often surprised us with monetary gifts when they visited. We saved this money in a small wooden box called “Kolo”. We broke this box during Christmas and discovered we had so much money to buy fun things to celebrate the festive season.
Commit to saving a certain amount every time you receive an unexpected amount of money. This can mean saving 50% of every unexpected income into your Savings Account.
You can use the remaining amount for debt repayment or spend it on something that will help improve your finances. However, if you think you really need some fun with your cash gifts or bonuses, then set a small percentage for that purpose and save the rest.
5. Increase Your Earnings
If your income doesn’t cover your expenses, you’ll find it almost impossible to build up an emergency fund – let alone save for your future.
You might not realise you need to increase your income until you start struggling to make ends meet. Higher income can help you reach your financial goals faster. You should invest in training to develop new skills that will help your increase your earnings. Another way is to monetize the current skills that you have. You will be surprised that people are willing to pay for your skills and the value that you provide.
Due to the pandemic, many employees experienced reduction in salaries. In this post, we explained the top five things anyone can do to start boosting their income. Go ahead and check it.
If you want to change your financial situation, you first need a change in your mentality. You can start by checking out these interesting and informative blog posts on our website;