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    Mar 12 th, 2020
    Finance 1 Comment

    Saving Money Tips

    How do I start saving money? Well let’s dive in to a key point that you should consider to fatten that old piggy bank.

    Saving money is an issue a lot of people struggle with and the question of how much you should be saving arises when such conversations come up. 10-15% of your income is a good amount to save for a long-term investment.  It shouldn’t be half of you monthly salary.

    A good savings plan should not curb you basic, normal way of life. By basic and normal I mean, how you spend on your basic needs like food & ECW overheads. It wouldn’t make sense if you saved a quarter of your income just not to be able to pay rent. True?

    Once in a while you have broken that piggy or opened that jar before it’s even halfway full. Something most of us have done. Saving is all about consistency and discipline. Here is a tricks to help get you started and start saving effectively

    A good way to start is to open a savings account. This is a separate account from your spending or current account. Almost all banks offer this accounts and they have outstanding features to help you accumulate more and more for that future investment you have been planning for

     Automatic bank transfers are a good way to save. This allows the bank to credit your account with a percentage of constant amount at given time or periodically from your checking account. Most people organize these transfer based on their salaries/income. If you are salaried, schedule a date after your payment date to ensure that there is always money before the transfer is initiated. For example, a day after your payment date

    How much should I save? As a newbie, the habit of saving is much more important than the amount. Developing the tradition of always having a growing credit balance in your savings account is a big plus than fixing yourself to a specific amount to be saved regularly. What if your income fluctuates and is not timely or prompt?

    The advantages of a savings account are having the money far from reach to think of spending it on impulse. Most savings accounts aren’t accessible via ATM cards, mobile or internet money services.

    This money is to build your net worth, for retirement, or other long-term financial objectives not savings for future vacations, not even emergencies should you bank on such an account. We are trying to build wealth here thence when money gets in, it shouldn’t go out!