Thanks to technology, it is now SO easy to spend your money.
The month you intend to save twenty percent of your income, the ATM will make sure it doesn’t happen. Then you swear that next month, you will save thirty percent of your income because last month, you failed to save twenty. Then again, the ATM, POS and online shopping are there to mess everything up.
The worst is the ease of buying ANYTHING online, especially airtime. In the past, I would refuse to make some calls because “I can’t go downstairs to buy recharge card”. But now, you can literally buy as much airtime as you want from the comfort of your bed, even at midnight.
How then do you avoid these temptations? How do you save money in this environment that is so hostile to savings? How do you start your wealth building journey?
The willingness must be there.
There is no way to control your impulse to spend if you are not willing to save. This is especially so in the current financial environment that brags on immediate access to funds. The best way to motivate yourself to be willing is to sit down and think about what savings can do for you in the future. Think about how it would lead to your financial freedom and ultimately allowing you to live your life the way you want.
Put simply, think about how it will lead to your freedom. This will give you a strong motivation. You can also think of things that are personal to you that will motivate you. To be financially free, you must save, find creative ways to motivate yourself to do the needful.
Don’t allow your wants today to deny you of a blissful future.
2. The first thing you must do when you earn
You cannot save if savings is the last thing you do when you earn.
The great American Investor Warren Buffet puts it perfectly when he said ‘don’t save what is left after spending, but spend what is left after savings’.
If you saved last, then your expenses will always gulp all your money so that you will have nothing left to save.
Save first instead.
Deduct the amount you want to save from your income then try your possible best to survive with the rest.
This will be difficult at first because you will be forced to adjust the way you live. Meaning that your lifestyle will initially suffer. But you will get used to it- if you are serious about it.
3. Make it difficult to access your savings
The retail banking sector of the banking industry in Nigeria has witnessed an incredible advancement in the past decade.The banks in an attempt to provide good banking services to you and I have gone on to innovate things that make spending so easy.
What do you do then? Make it difficult to access your savings account.
You can have as many bank accounts as you want but choose one savings account where you will save. Never allow access to internet banking to it, cut up the ATM card to that account, never download the bank’s application, never use their mobile service.
Nothing, just your money in your account. That way, you will have the hope of saving some good money.
You can also the services of Insurance companies that offer savings programs that can also serve as insurance covers.
It then becomes even more difficult to spend impulsively because once you terminate before the stipulated time, there is a penalty, and that is the last thing you will want for your savings.
There are also good traditional means of savings out there.
Whichever you choose, make it hard for you to access your money.
4. Set a goal
Have a goal to save a particular sum or a particular percentage of your income (but nothing less than 10 percent) every month and every year.
Don’t just have in your head that you will save this particular sum, write it down, remind yourself of the goal every day and work hard toward achieving it.
Goals are like burning fire, when you have one, and back it up with the right actions, you will be unstoppable.
5. Have a budget
You earn fifty thousand naira, and promised yourself you’ll save twenty thousand naira and spend the rest. You will find it very difficult to achieve this if there is no budget.
A budget disciplines you and helps you control your expenses.
When you want to splash the cash on that nice pair of shoes you saw in an ad on your way to work, a budget will remind you that you are not supposed to spend on shoes that particular month.
Create a budget and keep to it, it will help you save more.
6. Have a simple lifestyle
Having a simple lifestyle means spending only on the things you need.
Not spending on the things you want or the things that will satisfy your ego.
Make your life simpler; you don’t need to wear overpriced luxury items.
The more you indulge in unnecessary spending, the more you hamper your chances of becoming wealthy. You choose.
Read more http://www.mynairajourney.com/blog/best-ways-to-save-your-money/