Can’t seem to save money at all?
If you are an employee who’s figuring out why, even after all the salary increases, you still can’t seem to save money after every pay day then this is for you.
Surely Save Money in 10 Simple Steps
Master your willpower to save money
How? Your willpower should always be greater than the temptation to spend. However, willpower is a limited resource. You should have a bigger purpose or bigger goal to always answer the question of “WHY” you are saving. Here’s how you can set your financial goals.
Learn to live within your means
If you hate living on a “budget,” then you might as well call it a “Spending plan.” Sounds better, right? It feels that it doesn’t restrict you from spending. So, do whatever it takes to follow your spending plan. Tracking your day to day expenses can give you an idea on how much you spend on the average.
Separate your savings accounts from your general expenses account
After you have established your financial goals, now you have to separate your savings from your general expenses. This will greatly minimize the risk and the temptation to spend what you have saved. For some people, opening a passbook account for their savings is an effective strategy to prevent them from dipping into their savings.
Establish your safety fund
As a rule of thumb, three to six months worth of expenses should be kept somewhere you can readily access (In cash or in an ATM account). In the event of an emergency, that’s the ONLY time you withdraw from this account.
Save first before spending
How? Check out this formula on how to make sure that you save money first before spending. It really works!!
Save money regularly and religiously
If you do #5 and you do it every time you receive income, this will become automatic. You won’t have to think about it because it will SURELY become a habit. Guaranteed!
Continuously improve the amount you regularly save
As a model and hardworking employee like you, it’s expected that you will receive an increase in salary for all the great work you’ve done (good job!). The danger that I’ve observed is that when the salary increases, the lifestyle and expenses increase along with it! So, instead of setting aside a specific amount each month, set aside a specific percentage of your salary. That way, your savings will increase along with your salary increase. Great, right?
Save where you can beat inflation
If the average inflation rate is 3%-5%, then it doesn’t make sense to save money in the bank for the long term because banks just give depositors less than 1% interest. Which means, your money at the bank is depreciating at around 3%-4% annually. So, after saving up for #4, contact me and we’ll properly plan where to save your money.
Give away a portion of your income
As weird and crazy as this sounds, giving away a portion of your income will help you save more money! Why? Giving away money trains your brain to have an abundance mindset. Trust me, this works like magic! How? Giving away a specific portion of your income to a cause or to a person that can’t give back to you in return will give you infinite return. If you don’t believe me, why don’t you just try it? Just a warning, great things might come your way when you least expect it.
Start saving now!
Tips # 1-9 will be useless if you don’t take action! Start with what you have and from where you are right now. The best time to save money was yesterday, the second best time is now! If you need a little more hand-holding, contact me now and let me help you!
Which ones are you doing right now? Which ones do you want to implement ASAP? Comment below!
To our success in all areas of life,
Argel Tiburcio, CIS
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