If the coronavirus pandemic has taught us anything, it’s that we need to have some money saved up. But how do we do that? Truth is, sometimes, saving for rainy days is not prioritized because of the ever-mounting immediate expenses.
But to avoid being penniless in an emergency, or god forbid, another pandemic, it’s imperative that you start saving now. Stop overthinking it, and take the first step, and allow us to guide you up the others.
Record your expenses
Knowing how much money you have to spend on expenses will tell you how much you can actually save from your salary. Don’t just have an idea of gas, or the internet may cost- know the actual figure of keep a record how any changes in the amount, and adjust your savings accordingly. You can write them down or use one many apps designed to help you keep track of them.
Make your savings automatic
If you don’t think you have the will power to remove a set amount of money from your checking account when you get paid, then make it automatic. Almost all banks offer automated transfers between your checking and savings accounts. You can choose when, how much, and where to transfer money or even split your direct deposit so a portion of every paycheck goes directly into your savings account.
Find ways you can cut your spending
Take a staycation instead of flying out, cook dinner instead of buying fast food every day, recycle the clothes you already have, instead of paying for everything in your cart. Find ways to cut back on your electricity usage if you must, because the more you cut back on your spending, the more money you’ll have to save.
If too much of your salary is being used to service your debt, then you need to find ways to reduce it- taking out unnecessary loans should be the first step. Don’t take a loan to go on vacation or to go march in a carnival. A loan should be your very last resort in a desperate situation, not something you feel you always have the option of taking. A personal line of credit is just one option for consolidating debt so you can better pay it off.
Set a saving goal
You could just save for saving sake, but having a savings goal will make you more determined to save. Whether it’s saving a certain amount in a year, or saving towards a dream car, setting a saving goal will give you an impetus to save, and great satisfaction when that goal is met.