We have all thought about saving, maybe taken a few steps to start. It isn’t easy. Most people will tell you they just don’t have enough for themselves to save anything worthwhile. Let’s go through a few tips that will debunk these myths and help you build a saving culture.
Have a goal
Before you start saving, ask yourself what you are saving for. Are you just hoarding money that could be put to better use? Have a clear definite goal. It could be something you want to buy, or just for a rainy day and the unexpected. This goal should include a time limit. So you know how much you should have saved by when, and how much you should save per say day/month to achieve your target. This will make the sacrifices worth it.
Start small
Most us think that the money we have or earn isn’t enough even for the things we need. You can always start small. If you start saving 20,000 every week today you’ll have about a million shilling this time next year.
Save before you spend
You don’t save what’s left after spending, you spend what’s left after saving. This will help you spend comfortably knowing you don’t have to look out to keep some change for you to save. You won’t feel guilty about extravagant purchases because you already saved what’s needed. It also helps you to budget for your money accordingly.
Separate the savings
The biggest personal finance mistake you’re making is to keep money set aside for spending and savings together. You will spend it all. Whether you decide to keep it in a different purse, a piggy bank or separate bank account, whatever works just do as long as you separate your savings from the rest of the money.
Consider these few tips and you may soon open that business or buy that shoe that always seemed so expensive.
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