We all want to be rich…who wouldn’t want to. But before we can be, we must know how to save some percentages of our monthly income. But if you earn little income, how do you?
If you are living your life from hand to mouth just because you’re not earning millions, it is high time you learnt how to save.
In this article, I will be sharing with you how you can save even when you earn little amount monthly.
The general norm is to save 10% of your income but I tell you, you may need to do more than that monthly.
Remember, the art of saving is simple as well as hard. But, in order for you to save some money, you need to give up some lifestyles that you cannot afford.
Imagine earning 50k and think you can afford to live like celebrities. The result, you become a financial mess. You spend and spend till you have nothing to spend. Then you borrow and borrow till no one will lend you.
When you save money, you plan your life in such a way that your income can finance your lifestyle and still have more left. It takes a lot of discipline.
What are the ways to save? Take a sip and carefully peruse the tips.
1). Have a separate bank account: Now you are ready to save for dry season. The first step is getting a separate account you can put your monthly or weekly savings into. You can’t afford to be putting all your money in one account. You’ll be deceiving yourself by that except you are an exceptional money saver. Receive the salary with one and then transfer your savings to the account meant for that purpose. To keep this account safe, you may decide not to collect its ATM.
2). Start small: There’s no magic formula to save millions. You just have to start small. The amount you save doesn’t matter, what matters is your consistency.
Don’t wait till when you’ll earn significant amount before you start saving. If you’re going to wait, you may have to wait forever. You know why? Because you will never earn enough.
Saving can be likened to a drop of water. No matter how small it drips, it has the ability to fill a bucket giving it time. So is saving.
If you wait till you start earning millions s before you develop the habit of saving, it will be too late and wealth and financial freedom will elude you because you lack one of the basic ingredients to wealth – savings.
3). Budget and monitor it: Make your budget on how to spend your money for a particular month and stick to it no matter what. When you step beyond your budget, you put your savings at risk.
4). Plan your shopping: Don’t spend just because you feel like it. Palm your shopping ahead of time using your written budget every month. That way, you can’t buy what is not necessary.
5). Be mindful of your credit card
: Studies have shown that you spend 12% more
on average because using that card is such a smooth and frictionless way to spend money. Let your credit card out of your sight or keep it somewhere far like a woman suggest in Wealthy Barber Returns. Her urge to spend money would have subsided before she gets to where the card is.
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6). Keep your expenses in check: You can do this by acting on your budget. Make sure whatever you buy is not out of the budget.
7). Find a side hustle: Find a way to make extra cent for yourself while still keeping your job. Discover what your hobbies are and find a way to make it pay. There are websites that need publicity, if you’re into that go ahead and venture into it.
8). Embrace delayed gratification: This refers to when you resist a smaller but immediate reward in order to receive a larger or more enduring reward later. Before you buy whatever is brought to you, don’t act immediately. Wait for some hours to decide whether you really need that stuff or not. Which helps to avoid impulsive buying.
9). Save before you spend: There is no other wrong ways than to spend before saving. Don’t save what is left. No, it won’t work! To help your saving, try as much as possible to save that percentage you said you’d save before you think of buying stuffs. You pay yourself first when you save and pay others when you spend.
10). Be cautious with mobile data: Mobile data is one of the easiest way to drain one’s pocket. We always want to be online to chat, gist, gossip etc. While doing that, think about your savings.
Extra tip: Make sure your spending do not beget spending. For instance, you bought a bag for outing and when you get home, it doesn’t match the clothe you wish to wear. You will be forced to spend more to make sure your outing is successful. Also, instead of you to buy new TV, you went ahead to repair the faulty one. Unlucky for you, after repair you find out that the report is not working. Etc. Let not your spending begets spending!
In conclusion, make it a habit to save some percentage every month whether you earn much or little. Tomorrow may not be like today. Accident may happen, things may change. Your boss may decide to let go of the company. Save! Save! Save! It pays.
What other ways do you save your money? Endeavor to share and share this post with as many as you love and help them.
:Obembe Sunday D
(SirPhren) is a Registered Nurse, writer and Blogger. He blogs at Assist Blogger
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