One of the first things to do to be financially prudent is to learn to keep some amount of money aside. This, in formal terms, is called savings.
Though it might sound simple, it is more complex than it sounds. The discipline that it requires is a high one, especially if you are barely making enough to cater for your needs.
Nevertheless, some people have distinguished themselves when it comes to saving money. And it is important to learn from them as you begin your savings journey.
One of them is Jacques Poujade, a mortgage expert, financial guru and top executive with enormous financial experience spanning thirty years.
He maintains a real estate blog where he gives his informed opinion on emerging trends and real estate.
In this post, Jacques Poujade speaks about some of his top-secret savings tips.
Get Rid of Your Debt
Here’s the first thing to do if you are looking to getting serious about keeping some money aside. If you carry a huge debt burden, savings will be a bit difficult for you. Besides, if you consider how much you occasionally dispense to service your debt, you would discover you are on the losing side.
Of course, that money used to service debt can easily be saved, but this is after you have cleared all your debt. So, that’s it; if saving is important to you, you should first clear your debt.
Have A Savings Goals
The way you have a goal for what you want to achieve in life is the way you should have one for your savings. When you have a goal, your mind is better fixed on achieving it, and you are likely to work towards it.
In doing this, however, ensure that your goals are well articulated and clear. Don’t go beyond what you are capable of achieving, and give your goals a specific timeline. All these would help you in achieving your saving goals with relative ease.
Set Up an Automated Debit for Savings
Saving some money can be hard, especially if you have some bills to settle. But this does not mean you still don’t have to save. What you have to do is to set up an automated debit for savings.
Ensure that you set it up so that it deducts some certain amount every payday. This will save you the stress of having to manually put money aside. Also, it helps you achieve a strict saving schedule.
Cut Down on Spending
There’s no doubt that you have many things you are spending money on, and these might be taking your savings. To get serious with savings, you have to re-evaluate your spending checklist and cut down on the spending that is not needed. This way, you would be able to put some reasonable amount of money aside to go into your savings.
Have A Dedicated Savings Purse
Being the managing partner at LendPlus, one mistake I have discovered is that people do not separate their savings from other money. Most people only have a mental idea of how much they want to keep aside for savings.
The problem, however, is that they soon spend the savings alongside other money. This defeats the goal of saving, which is why you should always have a dedicated saving purse to remit your savings.
Saving some money can be hard, especially if you have some bills to settle or other important deductibles like health insurance, taxi car insurance, mortgage insurance, etc. But this does not mean you still don’t have to save. What you have to do is to set up an automated debit for savings.