MANY PEOPLE often make a promise to themselves to start saving next month; then that month turns to two and three. The point is, this is something that has to be taken seriously, the importance you attach to paying monthly bills must be adopted when saving. Saving is a good habit to get hooked on, and while you endeavour to put money aside, it would be wise to find ways in which you can stretch your finances and account for every penny you spend.
START IMMEDIATELY
It is advised that one should aim to save at least 10 per cent of their salary each month. If this can be done, do it. However, this does not mean you need to put off saving if you're unable to save that much. Everyone has to start somewhere, so if that means saving five per cent, so be it. Starting small is never a bad thing, your money will grow and as time goes by, you can aim to save more than you did in previous months. Ensure that the amount of money you put aside is one that is comfortable for you. You shouldn't feel as if you've sacrificed too much, or find yourself struggling to get by until you receive your next pay cheque. While you're in the process of saving, there are little tactics you can practice to stretch your finances.
ATM WITHDRAWALS
Budgeting is always advised, however, in your attempt to budget, certain day-to-day activities may be hindering your progress of saving a substantial amount each month. For instance, monitor your ATM withdrawals by devising a plan of taking out a particular amount each week, and stick to it. Resist the temptation of going back for more cash; instead, make it last. A good strategy would be for you to reduce the quantity you withdraw over time if possible; that way you could place the remaining amount at the end of the week, or month, in your savings or investment account.
DEBT PAYMENTS
Consider getting rid of some of your credit cards, specifically the ones with the highest rate. If you do this, you will be sparing yourself a lot of unnecessary spending, and you can start repaying the ones you now have, to eliminate that debt. It really isn't optimal to have more than one credit card, if your primary goal is to save for the future.
The sooner you pay off your loans, is the sooner you'll get to increase your savings. This applies to your car loan, student loan and other kinds of loans. The point is, if you are serious about getting rid of your loan debts as soon as possible, when you do, you are free to direct those extra funds towards securing your financial future. If you are able to repay your loans earlier than expected, you'll save on interest payments.
Try to pay a little extra each month on your mortgage, no matter how small, if you can afford to do so. In this way you can trim a few years from the life of the mortgage, and save on interest as well. Be sure to check with your mortgage provider first to ensure that there aren't any stringent penalties attached to early repayment.
INVESTMENT PLAN
Apart from having your traditional savings account, explore the various investment options available. Having an investment portfolio will enable you to experience greater yields on your money, especially if you choose to partake in a long-term investment option.
Utilising ways to stretch your funds, and habitually placing the extra cash in saving accounts, will allow you to have a substantial amount to invest. Many individuals have the misconception that this has to be an extremely large amount, when in fact you can start an investment with a relatively small amount that is realistic.
It is essential for you to be able to account for your money. It is said that people who know where their money goes, spend far less and save more. You can record weekly purchases, evaluate them, and decide what you can eliminate.
To further discuss investing and the many options we have available, contact DB&G at info@mydbg.com or toll free at 1-888-CALL DBG.
