Saving Money Is Not As Hard As You Think
Everybody loves investing. However, when it comes to saving all love is lost. Strange, but it is true. Most of us are not comfortable with the word ‘saving’. What we fail to realize is that no investments are possible without saving. If you think that climbing Mount Everest is easier to do than saving a fixed amount every month, well, you could not be more wrong.
Savings can be done if you train yourself to save. The main reason that we do not save much is because we do not take the effort to save. Once you master the art of saving then you could see your fortunes turn.
The first thing that most people need to save is the incentive to save. Why should you save? Well, it is obvious why we must save, but planning our retirement when we are still young would not encourage our brains to save. Our brains need something more. It needs to get the results a bit earlier than 30 or 40 years from now. Therefore, save for something bigger that you can achieve in the short run. Say for example buying your own house in 5 years and that too without a loan.
Even if it sounds unbelievable, your brain will feel that it is a reasonable incentive to forgo all that wonderful time spends eating outside. If you have the initiative, then there are many opportunities for you to save on your monthly income.
Savings Need New Bank Account: The first thing you got to do to start saving is start a new bank account. Remember the piggy bank you had when you were a child? If you do, then just imagine that your piggy bank morphed into this new savings account. And just like the piggy bank you are not supposed to take money from it unless it is full. Of course, your bank account will never be filled as your piggy bank. Anyway that is the trick to make you save more.
However remember one important thing. This bank account must not have a debit or ATM card, and certainly no net banking facility. This is because if you have these facilities, you will be tempted to withdraw money.
Savings can be done if you train yourself to save. The main reason that we do not save much is because we do not take the effort to save. Once you master the art of saving then you could see your fortunes turn.
The first thing that most people need to save is the incentive to save. Why should you save? Well, it is obvious why we must save, but planning our retirement when we are still young would not encourage our brains to save. Our brains need something more. It needs to get the results a bit earlier than 30 or 40 years from now. Therefore, save for something bigger that you can achieve in the short run. Say for example buying your own house in 5 years and that too without a loan.
Even if it sounds unbelievable, your brain will feel that it is a reasonable incentive to forgo all that wonderful time spends eating outside. If you have the initiative, then there are many opportunities for you to save on your monthly income.
Savings Need New Bank Account: The first thing you got to do to start saving is start a new bank account. Remember the piggy bank you had when you were a child? If you do, then just imagine that your piggy bank morphed into this new savings account. And just like the piggy bank you are not supposed to take money from it unless it is full. Of course, your bank account will never be filled as your piggy bank. Anyway that is the trick to make you save more.
However remember one important thing. This bank account must not have a debit or ATM card, and certainly no net banking facility. This is because if you have these facilities, you will be tempted to withdraw money.
Pay Yourself First: Now this is something you must practice like a ritual. You might find it difficult to do at first. However, you will learn it quite fast. The very moment you get your salary put an amount of that money in this saving account. This is called Paying Yourself First. No matter what, make sure that you do this every month and you will see how your saving is growing.
Moreover, with an amount of money thus already put in the account, you are forced to spend only what is left. Thus, you could save money and also cut down on unwanted expenses.
Control Your Urge: After all, we are all humans and so we get that urge to go out and enjoy ourselves. The devil tempts us with Pizzas, new movies, a new ice-cream parlor and what not. However don’t give into it. Just get yourselves under control. By stopping that urge you have saved money that would otherwise be wasted. Put this amount in that savings account.
Streamline All Your Earnings: You might be getting earnings from more than one source. Maybe it’s a small one like you sold your old newspapers, or a big one like you got a bonus or you made a great deal on that new stock you bought. Whatever it is and wherever it came from you are not supposed to touch it. It must go into that savings account. Losers think that windfall gains are God given fortunes to be spend lavishly today. However winners think that windfall gains are God given fortunes to be saved lavishly for tomorrow.
Moreover, with an amount of money thus already put in the account, you are forced to spend only what is left. Thus, you could save money and also cut down on unwanted expenses.
Control Your Urge: After all, we are all humans and so we get that urge to go out and enjoy ourselves. The devil tempts us with Pizzas, new movies, a new ice-cream parlor and what not. However don’t give into it. Just get yourselves under control. By stopping that urge you have saved money that would otherwise be wasted. Put this amount in that savings account.
Streamline All Your Earnings: You might be getting earnings from more than one source. Maybe it’s a small one like you sold your old newspapers, or a big one like you got a bonus or you made a great deal on that new stock you bought. Whatever it is and wherever it came from you are not supposed to touch it. It must go into that savings account. Losers think that windfall gains are God given fortunes to be spend lavishly today. However winners think that windfall gains are God given fortunes to be saved lavishly for tomorrow.
Invest a Part of the Money: We all know that ‘Savings’ just cannot live by itself. It needs ‘Investments‘ by its side to be really happy. They are like a family. You cannot separate them. Therefore, you must invest a part of your saved money to make your money grow.
Now you are not losing your money but actually you are making more money out of it. You can invest in Fixed Deposits, government bonds and even in equities according to the risk you can take.
These are small things you can do to save money. You can achieve big things in life if you have good savings in your account. Saving is not much hard to do as we thought. We all can do and buy our dream house.
Now you are not losing your money but actually you are making more money out of it. You can invest in Fixed Deposits, government bonds and even in equities according to the risk you can take.
These are small things you can do to save money. You can achieve big things in life if you have good savings in your account. Saving is not much hard to do as we thought. We all can do and buy our dream house.