Mar 6, 2018

If You Think Saving Money Is Difficult, Read This

A lot of people around the world find it difficult to save money. Most have the intent to save but when the time comes to save money, they are unable to do it. The reasons are many, some of them like to spend cash when they have it, some like to spend on friends and family, some like to gamble, some like to spend on gadgets that they do not require etc. Though the intent is there the inclination is not there, all they need is the initial push to start and when the saving process starts, they will find that it makes a lot of sense to do it rather than spend.

The first thing that a person needs to do is to write down expenses. Putting every expense on paper is very important because it will let you know how much you are spending every month. It will also show the unnecessary expenses that you are incurring each month.

Next you should plan your budget. There are many financial calculators online which you can utilize to create a budget. When you budget your finances you will be able to set aside money for each expense and with the remaining money you can fix an amount as your monthly savings. The ideal saving amount should be at least ten per cent of your earnings. If you cannot save even ten per cent, then you are spending more than necessary, so try to cut down on expenses that are not necessary.

Another reason why people do not save or even if they do, they stop doing so after a few months or years is due to the fact that they have no goals. The ideal saving plan should have a goal. You should be saving for something. A short term saving goal would be to set aside money for emergency expenditure. You could fix an amount that you need for emergencies and set about attaining that goal. Once you have achieved that goal you can set a new goal. You may want to save for a holiday. You can then do the same thing again. If you get a windfall such as a bonus, you should add that to your savings and you will find that you will achieve your goal even sooner.

That said, you should also save for the long term. So you should have long term saving goals too. Long term goals mean planning your retirement, or planning your child’s education, or planning to save for your marriage etc. Long term goals are the hardest to adhere to. You will not reach your target soon, you need to be disciplined and determined to achieve that goal. You should not waver from attaining your goal.

You should also meet a financial adviser and ask them about the best financial investments. With a thorough knowledge of your finances, you will be able to speak to the adviser better and be able to invest in the best opportunities out there.

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