Saving money for Starters
Saving money for Starters
We all love to spend money, I mean who doesn’t? It’s a trait we all as human beings have and enjoy doing at times. Spending money can be a good and bad thing depending on what and why we use it. Take for example, you see something you like and you suddenly had the push to get it for yourself, they’re some things you need to consider before getting it. You don’t just buy it because you like it as you might need the money for something much more relevant than that. If spending a little cash doesn’t affect you, then its okay to carry on with whatever it is you want. It is, however, important that you consider certain things before deducting a specific amount of money from your pocket. Practicing and doing this can actually go a long way in helping you save and spend wisely. Before you start saving, there are important factors you need to consider and take note of. These following factors should help set you on the right track:
1. The purpose for saving
Is there a particular reason why you’re saving the money? If there is, its best you start of by keeping, investing or depositing the money in a place you can not access. Perhaps giving it to a trusted family member or saving it in a bank till your ready to use it can help prevent you from squandering it. You don’t necessarily need a reason to start saving money but it is advisable for you to have some saved money incase some sort of emergency comes up. This saves you from taking a loan or borrowing some cash you might find difficult to pay back.
2. A list on what you wish to use the money for
This, in a way, is more like a shopping list of some sort. Maybe you have plans of buying some kitchen items probably a dish washer, cooking utensils, a refrigerator or a mini dinner and you suddenly find yourself not having enough to buy them as the money you earned isn’t sufficient enough. You need to make a list of the important things you need starting from the most necessary downwards. For instance, you’ll need some cooking utensils more importantly, a refrigerator next as you could use for many purposes, a dish washer and the mini dinner. Notice how the listings were arranged in order of that of a higher priority to that of a lower. When you realize just how important you need to get something, it brings about the thought of wanting to save to achieve them bit by bit. Using this method to save will help you accomplish a lot at a steady paise.
3. A ‘Start up’ and ‘Finish’ date
You need to decide when you want to start saving the money and for how long you’ll need to do so. Setting a time for this and keeping track of your savings can help you save better. While trying to save some cash, let’s say from a period of January to June, you need to consider:
- The type of savings: do you want a daily, weekly or monthly kind of saving. Pick a choice that works best for you.
- The amount you wish to start saving: if it’s a daily type of saving then starting with a small amount is wiser. However, this depends on the kind of job or business you’re into. Pick out a plan you think you’re capable and diligent enough to do.
- Where you want to save: there are multiple places you may choose where to keep your money. My advice would be to invest as you would receive an agreeable percentage when you get a cash back. Another way is to deposit it in a savings account that allows you not to access the money until the time or date you wish to withdraw it.
4. Save more, Spend less
Its best you go through the hardship of saving and enjoying the fruit of your labor in due time than receiving, spending and continuing the process. When reckless spending like this happens, it leads to a series of loans and debts you may or may not be able to pay. To avoid the unnecessary stress and burden of borrowing and searching for how to pay back, you should practice this step as it is one of the very important keys you need to remember.
Saving is not as easy as most people would place it to be. It can prove to be quite annoying and frustrating especially when random things pop up from no-where and demand the use of your savings. Things like this happens a lot but how you choose to go about it can help you even in the worst cases. You must note that it is important not to give up or stop trying because if you do, you’ll be slapped hard.
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