Lack of money is the biggest source of stress. It actually causes many people to make wrong choices and decisions out of frustration.
If you were to ask most of those categorized as “successful people” many would tell you their tricks in how they started to save from their small earnings.
Many people think saving comes after all the necessary needs have been settled. The truth is, needs will always grow to equal our incomes until we learn the 5 best tricks to save money;-
Have a budget
If you have ever heard of a phrase “don’t spend more than you earn”, the essence of it is to spur you to have surplus funds to save.
However, many times if you don’t have a budget, you may unconsciously spend beyond your actual earning.
Therefore, a budget helps you evenly apportion your expenditure against income. This does not only enable you gain control over your money, it also makes saving conventional.
Be in control of your Bank Account
With the latest electronic banking services, you can widely access your money by use of Mobile bank apps, ATM cards, Reference codes, Mobile Money etc. This makes it fun to withdraw at anytime.
It is not getting “out of fashion” choosing to unsubscribe from some of these digital services if they are really tempting.
Limiting regular access to your money account does not only relieve you of the frequent withdraw charges & impulse buying, it also cushions you from eating into your savings.
In addition, you can decide to fix your idle deposits and the bank utilizes them to lend others and pays you an agreed interest.
For salary earners, when your monthly salary hits the account, try to hold it for at least 15days to allow the dust settle. After 15days a lot of unnecessary desires would have blown-off then you can face-off with the real needs.
Reduce quantities
30% of your money is believed to leak through the unnoticed day-to-day tendencies like addiction to alcohol, preparing too much food, paying subscription on more than one decoder e.t.c.
For example , using public transport for a distant journey can help you reduce fuel load & servicing costs for a private car.
If you get your meals from the same nearby restaurant every day, try bargaining for a monthly discount rate to help you reduce the huge daily rates.
For “Safari workers” if one room can accommodate you with your holdings, it may save you heavy costs for a full apartment.
“Perfect spending choices reduce cash wastage,” this makes room for saving.
Make strategic use of employment benefits
You’ve heard of a tag-line “Money from salary will never be enough”.
Whether this is true or not, what matters most is how one takes advantage of the situation. Learn to leverage your incidental employment benefits, for instance, Medical insurance, bonuses, commissions, housing, data & Airtime, Meals and transport allowances to counteract your regular expenses.
Then, use your net pay wisely to save and invest.
Opt for automated saving
You must have heard your business coach saying “Pay yourself first”. It literally means before you spend on anything else put some money aside for your future well being.
This works out well with the automated saving scheme. How is it done?
Instruct your bank to deduct a given amount of money from your account every specified period and wire it on your savings account, Sacco, Insurance, etc.
This does not only tame the temptation for unplanned expenditure, it also makes saving become a routine.
Benefits of saving
Saving makes a dream come true. The truth is, many people would like to have a blast, enjoy a good vacation time, wedding , marriage anniversaries, posh rides, “booze cruise” etc.
Unfortunately, all this may not unfold if you did not put some money aside for them.
Saving keeps you fully assured that one-day at a time you will see your fate off on the right foot.
Don’t wait for the best days of your life to come then start saving. It’s the little you choose to start saving today that may turn around your life.
It enables one to Invest. While many people stress investment in connection with stock markets, mutual fund, digital currency and network marketing, agriculture and education.
Education today in professional “hot cake courses” M&E, CPA, CIPS, CCNA” can turn the tide. Polishing your skills enables you switch to a high-value employment chain, hence doubling your earnings.
Investment in Agriculture. You may not own enough land to draw on commercial farming, however, using your average savings it’s possible to hire land in an ideal location and break new grounds to double your earning.
Saving helps prepare for retirement. Many people flock receptions of their former workplaces to seek financial help after their retirement. To avoid such off-key moments, it’s important to create a retirement fund to help you live a decent retirement.
Much as there is mandatory NSSF saving scheme, the funds may not be enough to meet all your post-retirement needs, hence it’s vital to have a supplementary saving basket.
The percentage you may save per month vary depending on your expected retirement age, retirement goal, your total monthly income and how much you have so far saved.It gives peace of mind. I’m sure you heard of a saying “If you save money today money will save you tomorrow”
Nothing feels good like knowing you have some money that can help you deal with the “curve balls” thrown at you. Without money you may not find the courage to walk away from exploitation or drama because you’re low on resources to make a new start.
Saving cushions emergencies, the unexpected events that require immediate action, for instance, medical complications, loss of a job, accidents etc.
If you’re caught penniless, such awful situations may slam you into impulse borrowing and gets you soaked into the heavy debt burden.
An easier way to motivate yourself to save is by thinking of unpretty possibilities, for Instance “If you lost your business or job today, for how long can your feet keep on the ground?”
“I didn’t see it coming” is not a solution, saving is the way out
George Bakiwanya
Financial Accountant
