So you work hard work every single day and are able to earn money to cover your daily expenses but you are not able to save much. No matter how much you try you find it hard to save since you have all this needs and wants and somehow your earnings are never enough.
Not to worry because at the end of this article you will learn how you can easily create a savings culture.
1) Set achievable financial Goals
Saving is obviously challenging for most of us but the truth is it’s only hard in the beginning. Saving can be overwhelming for most of us since no one has enough money really. So the best way to stay motivated is to have an end goal that you want to eventually achieve.
Ask yourself what you are saving for. Do you need to build an emergency fund? A retirement plan? Or do you need to purchase some property at the end of it all.
Having a clear vision as to why you are saving will keep you motivated and focused since there is something you are working towards.
2) Consider a financial assessment
The best way to start saving is to first understand your finances. How much do you make? Where does most of your money go? Do you have a budget? What are you doing right and what do you need to change in favor of creating a savings culture?
Sometimes it not about making more money it’s about being able to manage what you have first.
When trying to create a saving culture you must know where you currently stand financially, where you are headed and what obstacles you are likely to encounter on your way there.
3) Automate your savings
Once you know how much you are able to save each month the best thing is to automate your payments. Read How to save using the 50,30,20 Rule to understand how much you should save each month according to your income.
Most local banks offer a standing instructions option and this is the time to take full advantage of this service.
Some banks also offer the option of a target account where they deduct a set amount of money every month for a period not shorter than one year. A target account is a fixed account so it restricts withdrawals and this can keep you disciplined as well as earn you interest at the end of the contract.
4) Take advantage of high yield accounts
One other motivating factor can be scouting for savings accounts that have a high rate of return. Avoid having your money sit in a regular bank account earning no interest at all. Window shop on saving accounts and different banks and financial institutions such as SACCOS and settle on beneficial savings accounts. Your final choice will be dependent on your income and your personal financial goals.
5) Reward yourself for every milestone
When you achieve some progress towards your saving goal, make sure that you reward yourself for a job well done. Set aside some money and buy yourself something you have always wanted. Take some money off your savings and pamper yourself. This will keep you motivated and looking forward to keep saving more.
Most of us don’t save because we don’t feel like we have enough money to save. While else it’s true we are surrounded by bills and unexpected payables you will never have enough money to save. Believe it or not a savings culture is not connected to how much money you make it’s more a mind-set. Some people are not able to save no matter how much money they make. We however hope this article helps. If you like it subscribe below for more educative fresh content.