Omo Jigaloye | Today at 3:48 PM
One of the greatest lessons this pandemic has taught us is that predictability is a privilege for those who can plan.
The hardest thing about saving money is getting started…
This step-by-step guide on how to save a minimum amount of money can help develop policy and realistic approach:
Record your expenses: Saving money ‘depends’ on how you keep records of how much you spend. You need to keep track of all your expenses such as utility bills, household items, and subscriptions. When you have your details, arrange them in categories for example internet subscription, mortgage, foodstuffs, cash gift and rent. Take the total of each amount and compare with your bank statement and ensure everything is accurate. Also, check for spending trackers on Google Play Store; This helps to automate and categorise all your transactions for easier accountability.
Be your Bank Manager: It is your duty to oversee every transaction that occurs in your account. Follow up with cheques issued to avert extra charges and sanction in case of bounced cheques.
Watch your savings grow: With online Banking and mobile/app set up, you can check the progress on your account. This can convince you to stick to a personal savings strategy. It also helps to recognise and fix issues in time. It allows you to understand how to save, invest, and reach your target.
Make a Budget plan: It is good to take records on whatever you spend every month; this would help to organise your spending expenses into effective budgeting. When you have details on what you spend on a monthly basis, it allows you to limit your spending. Always note daily expenses such as recharge cards and other petty expenses. You can then aim to save up to 20 to 30 per cent of your income. Ensure you stay within the budget and don’t go above it.
Create investment goals: One of the best ways to save money is to create a goal. You can start by deciding on what purpose you want to save for such as vacation, marriage, kiddies account, health and retirement. You can then think of how much you want to be saving and how many years you want it to last. Make further research for companies whose policies meet your investment goals. There are short and long-term investment goals ‘you can use whichever suits you’.
Set up automated savings: The internet has made things easier, especially with automated transfer features. You can choose how much, start date, and duration or signed agreement between you and your bank. Having automated savings helps to reduce expenses and caution to spend above your limit.
Minimise your spending habit: Take a time out to identify what is not important that you can spend less on. Perhaps there are less privileges that lack and need help. You can channel your resources towards this course. Give yourself a break to cool off and get things done by yourself. Not everything demands ordering online that could attract offensive delivery charges.