The Importance of Saving
We all know that since then, having a savings account is important because this will serve as your buffer for when something that immediately needs financing arises. This includes medical emergencies, setting up your own business, funding your child’s education, and of course, unforeseen events like calamities. When the COVID-19 pandemic started, many people were laid off and they had to depend on the government for their family’s daily needs. Those who had a savings account, however, were able to continue with their day to day living because they were prepared for this moment. This is the importance of saving – for you to have your own source when the need arises. Today, we will be sharing with you 3 tips on how you can fund and increase your savings.
Cut off unnecessary expenses
In order to increase your savings, you have to check the things you spend your money on. Jot down your monthly expenses – from your food allowance (daily meals, take outs, iced coffee, milk tea), rent, utilities (electricity and water), fare, subscriptions (gym, magazines, applications, premium accounts), and your monthly “online shopping schedule”. You can also opt for home workouts and find exercises you can imitate on the internet rather than pay thousands on a gym membership. After you’ve laid them all out, evaluate each one, and determine which expenses are necessary and which ones are unnecessary.
Of course, I’m not telling you to cut-off the fast food or to unsubscribe from your premium accounts – that is not my decision to make but yours. Think of it this way, if you’re having a hard time funding your savings account, don’t you think that you can cut off these additional expenses you’re incurring? If you really want to increase your savings, you need to have a shift in your mindset. You need to sacrifice the things you want now for the things that will benefit you and your family in the long run.
Start a side hustle
The income you generate from your regular job is what you will be using to pay off your daily expenses, while the extra income you will be making from your side hustle will be the one you’ll use to fund your savings account. Remember that just because a person is working many jobs doesn’t automatically mean that they are “broke”. Don’t be ashamed to let people know that you are selling online or working as a freelancer on the side because having a side hustle is not something everyone can do. Many people would rather binge-watch their favorite shows or sleep in on the weekends instead of using their extra time to make use of their skills and earn money on the side.
Beyoncé has 24 hours in a day. So does LeBron James, Steve Jobs, and Jeff Bezos. IT is how you use those 24 hours that makes a difference. Invest your time in important things instead of wasting it on things that don’t contribute to your growth. Again, I’m not saying to work 24/7 or sacrifice your time for your family and the things which are important to you. NO. What you should do is to avoid slacking off now and waste your time browsing your social media accounts or watching the same show 100 times when you can be learning a new skill online and starting a side hustle. You can check this link for some of the proven ways on how you can make money online.
Prioritize your savings fund
At the end of the day, it all boils down to one thing – discipline. As the saying goes, “you make time for the things which are important to you”. You make time for your family, your ministry, your loved ones, your studies, and your work. In the same sense, you should prioritize the things which are truly important for you. In case you haven’t started a side hustle yet, make it your goal to save at least 20% of your monthly income. The formula should be:
Monthly Income – Savings (20%) = Expenses
Some people do it the other way around. Once they have received their income, they would immediately buy the things they want, go to the mall, spend their money on things they don’t even need, and save whatever’s left. You can spend on yourself and treat your family to a nice dinner but you don’t have to buy something you don’t even need just because it is on sale. You don’t have to buy a new bag when in fact, you still have 4 perfectly good bags stored in your closet. You don’t have to buy a new make-up when you still have unopened products in your make-up kit. The key here is discipline.
Do you know other ways on how you can increase your savings? Let us know in the comments section below!