The idea of saving money may sound great, but doing it is downright hard. We all have different obligations, incomes, and habits and by default we tend to focus on the present.
Most people save whatever is left over after all their expenses and spending for the month. If you are having difficulty saving, don’t be sad because there are some simple rules that can help you save better.
How much do you earn? How much do you spend? How much do you save? If you can get these three questions right, you’ll be well on your way to financial security and stability.
The secret to wealth building is unchanging according to many financial analysts, and below are 3 simple rules:
- Pay yourself first – The classic rule of paying yourself first recommends that you save at least 10% of all income earned. If you want to attain financial independence, save 10% or more now. It’s never too late to start. At Union Bank, we have Target Savings Products like UnionKorrect to help you save monthly at good rates. You also stand a chance to win cash rewards in quarterly draws.
- Control your expenses – This simply means live within your means. Don’t live an extravagant lifestyle, be frugal. Differentiate between spending on assets and liability. This can be achieved by having a budget. List all your expenses, plan and reduce the unnecessary ones.
- Make your savings work for you – This is very important. You must invest your savings wisely. Ensure you have knowledge about what to invest in and consider all the risks involved. You must guide your investment from loss. Do not be greedy. Ponzi schemes should never be an option. You can invest in money markets, fixed income securities, equities, mutual funds or real estate.
Finally, every small effort adds to a big amount when it is about money saving. You can create your own savings guide to chase your dream with minimal effort. This can help you to save money without any crunch on expenditures.
If you have your own saving guide, please share with us in the comments section below!
Author: Ahmad Dalhatu