It is an age long established fact that nobody can escape poverty without a savings habit. Anybody that spends everything on consumption is just a step away from poverty and its various consequences. Living paycheck to paycheck can be daunting. It can feel entrapping, stopping you for exploring other career options or life choices. For me, I call this “being stuck in the wheel.”
Having a high savings account is a the biggest safety cushion, and I highly recommend saving for rainy days. Read on to get out of the wheel, and take control of your finances in these easy ways!
Read on to get out of the wheel, and take control of your finances in these easy ways!
1. Plan, Plan, and Plan
As much as you can, plan your finances. Build a budget, and stick to it. Forecasting your needs and planning around big purchases is key to financial success. List exactly how much you need to spend on what, and save the rest! It will give you the power to take the control of your finances and will benefit you immensely.
2. Create side business
Basically, find a side hustle. Find your passion and go beyond your job to cash in after hours. There are multiple avenues and ways to turn your free time into cash time. Think Uber, blogging, affiliate marketing, product sales – and the list never ends. In this sharing economy, get in and cash out!
3. Join Co-operative society
The first thing cooperative societies do to individual members is development of savings culture. It is an age long established fact that nobody can escape poverty without a savings habit. Anybody that spends everything on consumption is just a step away from poverty and its various consequences.
As a member of a cooperative, you must contribute regularly, most times monthly. The contribution is usually deducted from your income, before you even receive it. So, irrespective of your needs, you save compulsory. Also, because the money is not within easy reach, you cannot easily access it to spend.
4. Automatic Savings
If you use online bank, have a company savings account, or any other variation of tracking your finances online – use it. Set aside 10% of your income and have it track into your savings. Grow or downgrade from there, but start with an automatic savings of 10% and work your way from there.
Are you building bad habits? Be honest with yourself, and critically assess where you are habitually spending money. This includes carefully analyzing your utility bills and logging your cash spending to see if you have a pattern or habit you need to cut.
6. Look at Your Living Situation
Are you living beyond your means? Take a good look of what you are spending the majority of your money, and see if you can scale back. See if you really need that car lease, the apartment, or WiFi. Truly assess your needs and see where you can reduce to save for the future.
7. Create a Budget and Monitor it
If you are planning to save a percentage of your earnings, then you should have a budget, and bear in mind that your budget should include everything you spend money on monthly; even money spent on airtime for your mobile device and money you set aside for charity.
Write out how much your disposable income is on a monthly basis and how much you intend to save. Also, write out every single item or service that you pay for; right from the salon to the restaurant and others. In other words, ensure everything is covered; every single thing.
Regardless of what comes up, a portion of your salary needs to be saved…Joberman.com
8.Avoid making impulsive purchase decisions.
Always “sleep on” larger purchases that don’t need an immediate decision. If you aren’t mindful of your spending, a trip to the store or a few clicks on the web can blow your entire budget.
- What constitutes a larger purchase will vary depending on your income level. The two biggest purchases for many people would be a car or a house. Both of these should take a lot of research and time before committing to. However, while most workers would consider things like furniture, appliances, and electronics to be big purchases, very high earners may not. Conversely, while some may consider a superfluous pair of shoes or a new book to be a major purchase, others may view them as trivial.
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