How to make your savings easier

Michael

Staff member
Administrator
UF Member

People always say that saving money is very good but it’s not an easy task. Though it takes little to no effort to open a savings account, trying to maintain and grow that balance over time is not easy. Many banks offer interest on savings accounts, but this is not enough. It requires planning and discipline in order to build an adequate savings fund. Here is experts’ advice to make saving easier and more effective.

First and foremost, budgeting. Maintaining a budget of your expenses each month is the first crucial step. Begin by keeping a record of all your purchases.

Organise each transaction categorically (groceries, bills, fuel, etc.) and add up the total amount for each. Now that you’ve got an accurate view of what your expenses are like, you’ll be able to create a spending budget for the following month.

Limit over-spending and cut back in categories where you can. This will help you cut out any unnecessary spending. Also remember to include expenses that happen often but not each month, like automobile maintenance or holiday shopping. The goal is to manage your expenses so that you can create a surplus each month to put away.

Another way to make your savings easier is to automate your saving every

month. Each time you receive a paycheque, make a payment off the top to your savings account before you have the opportunity to spend all your money.

Many banks offer an automated withdrawal system that can make this process very simple. As your spending habits improve, you’ll ideally be able to increase the amount of money you put away each pay period. Perpetuating this action is one of the easiest ways to consistently save.

Restriction is other big way to save. It can be tempting to transfer money from your savings to your checking account. This action is highly discouraged. In order to most effectively grow your savings, deposits must outnumber withdrawals.

An easy way to do this is by giving your account a discouraging title. For instance, if your account is labelled “London Vacation,” a quick reminder of what you’re saving for can deter you from transferring funds.

Additionally, try to restrict yourself from making unnecessary or spontaneous purchases. Refer to your monthly budget and determine whether or not you really need to see that movie or buy Wrist-watch.

Finally, looking ahead, accumulating security for the future is the ultimate goal of a savings account. However, saving can be difficult when it means you’ll be making sacrifices today in order to reap the benefits later on.

A lot of Nigerians are severely unprepared for retirement; with student loans, car loan and other forms of debt combined with poor spending habits. Making the hard decisions is an essential part of building a retirement fund.

Though most of us rely on banks for our financial security, the security of our financial future is up to us individually. Without effective saving habits, it’s possible you could find yourself up the river without a paddle once you’ve reached retirement age. Start saving today for a secure and hopeful future.



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