10 Effective Ways To Start Saving Money Today
Saving money must be a part of our everyday lifestyle. Saving money must not be limited to the rich and affluent in our society.
Every individual as long as he or she earns a bit of income must develop in the lifestyle of saving money.
There are people out there who would literally spend all the income they receive every month without putting or saving any of it.
How to save money for low income earners
It’s quite unfortunate that a lot of people do not have or possess the habit of saving because this topic is mostly not talked about or even taught in some schools.
People generally develop the habit of saving mostly by learning from other people or by learning from life experiences and also by learning from their own personal experiences.
Learn – saving money
Learning about saving money from your parents is one of the best gifts ever parents can give to their child.
But if this does not happen a person can grow up without the habit of saving and would literally be living “from hand to mouth”.
Living “from hand to mouth” would literally describe a person who spends every penny he or she earns without saving any of it and any expense that the person in care would have to wait until the person receives a salary.
In this instance, if a person is faced with an emergency such as a broken down vehicle, that person would not have a needed source of funds saved away somewhere to help solve that problem. The person who would then have to wait till Pay day before any little expense or problem is solved.
In some instances, that person would have to borrow money from either friends and family or from a financial institution which could lead to more debt.
This article will talk about the benefits of saving money and how developing the habit of saving money can improve on an individual’s lifestyle no matter how much they earn.
saving money – You Can Prevent debt.
According to research eight out of every 10 people are in some forms of debt.
One reason why people are in debt is because they do not control your spending and they do not SAVE the little they earn.
This is as a result of poor money management or Saving.
Developing the habit of saving can prevent anyone from incurring a lot of debt which they cannot to be able to pay for.
There are a lot of people who like to buy stuff on credit. People generally believe funding stuff on credit would ease the burden they have on them. But the problem is being able to pay back the money you borrowed.
Not saving enough could mean not being able to allow you to pay for such a basic debt.
Saving money would also prevent you from being in debt or even limit debt to some extent because you would have some money saved somewhere that can be used to either fully fund or partially fund the cost of the item you need or wish to purchase.
Saving money can also prevent you from going out there to borrow money to solve emergency situations and problems.
Saving money – You will have access to Emergency Funds
Emergencies are bound to happen in our day-to-day activities. These emergencies can sometimes require some money to solve. If a person says he or she won’t be able to find this emergency without seeking assistance from friends, family or financial institutions.
Saving from time to time can be able to easily help when such emergencies occur.
For instance if a medical emergency happens, it could require a bit of money to solve savings and can go a long way to help. A person without any money saved in this instance would not be able to receive their emergent help and assistance needed to treat the ailment.
People should generally not wait for such situations before they start saving.
Saving money must be a part of our everyday life to solve such emergencies.
You will have a Financial Back bone in times of sudden Job Loss
Job losses are also one of the unforeseen circumstances that can easily happen to people.
People who lose their jobs cannot be able to even apply for loans because of their sudden situation. They may not be able to receive such funds to solve some emergency financial situations or problems they may be faced with.
As a worker one must always ensure they save a percentage of people money for these on foreseen circumstances.
Savings can go a long way to help people who have lost their jobs in their times of need until we are able to find another job to bounce back financially.
You can Plan for Retirement
One of the main benefits of saving is to be able to have access to money even when one is on retirement and not working.
If a person is able to say very little amount of money over a period of years this money can be able to support that person when they are on retirement and no longer working.
Retirement is something people cannot escape and it is generally a part of nature so anyone receiving an income must think of their future. People must think of how they would survive financially when they are retired and not working.
You will attain Financial freedom
Developing their habit of saving over a long period of time can help a person to attain the match spoken about financial freedom.
Financial freedom can be described as a state in which a person is able to afford and provide the basic necessities of life and lives a very comfortable life without relying on when they are going to receive their next monthly salary.
This financial freedom situation is what most people want to wish to obtain. But this can mostly happen if people do not develop a habit of saving. A person can even have access to millions of dollars today but may still not be able to be financially free tomorrow and this depends on how much the person SAVED when he had all that money.
You will be able to Fund your projects
Having money saved for a period of time can go a long way to helping individuals to find certain projects they may need.
The project can be in the form of funding for a house, a car, an education, travel and many more.
A person who has not developed the habit of saving cannot be funded fully or even partially fund their personal projects.
people who are not able to find these kinds of projects or activities will always seek to look for extra funding. And this leads to more dept.
A person must develop this habit of saving so they are able to tackle each of their personal projects.
Remember saving does not have to be for the rich alone; everybody has to save. It doesn’t matter how much you put aside any time you receive an income.
Every small amount that is set aside counts.
Saving money can also be a form of self discipline that can be practised by parents so they are kids can learn from.
Kids look up to do a parent a lot and if kids grow up knowing that we have parents always had a stash of money saved somewhere for uncertainties do it also go up to practice the same habit and this would go in the long run to reduce the cycle of poverty in our lives
This is because most courses that are taught in our schools would teach people how to make money and not how to save money.
People pay a lot of money to educate their kids but if kids do you not have the proper education on how to save the money they earn in future then please kids or future adults might end up not developing the habit of saving.