5 Smart Saving Tips to Keep in Mind
Saving properly is tricky but it is essential to secure a better future not only for yourself but also for your loved ones. To help you get on the right track towards financial security, make sure to keep in mind the following valuable reminders.
Ditch the Bahala Na Attitude
First of all, develop the right mindset and have enough discipline. Effective saving entails a lot of mental work. The bahala na attitude is common among people who do not have any savings. The YOLO (you only live once) philosophy is positive only to an extent. When it comes to your finances, you need to set a limit as throwing caution to the wind can lead to major consequences.
Cut out vices
Aside from damaging your health, vices, such as smoking and frequent alcohol drinking can, in the long run, consume a significant portion of your budget. Most of the time, we don’t think much of them because they cost so little (or so it seems), but these vices may be costing you more than you think and are doing serious damage to your financial future as when added up, over time, they eat into your supposed savings.
Savings Over Expenses
While expenses are certainly not to be ignored, experts say that savings should come first. Upon getting your monthly income, instead of deducting your expenses first, an amount (savings) must be set aside first. This way, there is certainty that you will be able to save. Whatever is left will be your budget is for your expenses. If the remaining amount appears to be too small, then perhaps it’s time to reevaluate your expenses.
Don’t Save to Spend
Money set aside for short-term goals are often just big expenses and should therefore be separate from your real savings, which should never be touched unless absolutely necessary or is already ripe for the taking. It is best that you allocate your savings to significantly improve your financial state in the long run or to practically uplift your way of living; like a real property or a substantial business.
Eyes on the Prize
Constantly remind yourself of your goals. What are you saving for exactly? It helps if you put it on paper and can be easily seen every day. Have a visual inspiration. This will help you avoid getting distracted. Remembering the forthcoming benefits of saving will keep you driven up to the finish line.
