Money is very tempting and if you’re not smart with your money, it may result in you benefiting less than you could have been. It is not easy to save but this is very essential for achieving financial stability and ensuring a peaceful future. There are obviously monthly bills that need to be taken care of and this may be a big drain to finances. However, this should not be a reason not to save because the little you save will make much sense in the future. You may be considering things like education for your kids, life after retirement, a future wedding and so forth. Imagine if you suddenly lost your job today. Imagine if you got an emergency that cannot be catered for by your insurance policy. The situation could obviously be horrible. You should therefore make saving a priority when you receive your wages. You can also choose to have an automatic deduction before you receive the amount, which means your savings go straight into your bank account rather than your pocket. You should never allow the self-defeating thoughts that you have too little to take care of your long term needs to crowd your mind. You have time as an alternative resource to this. If you find yourself not knowing how to organize your finances, it is always advisable that you look out for help from a financial advisor.
Ways to save for the future
If you are a salaried employee, you will need to enrol with its pension scheme. This will therefore assure you of a safe future after retirement since you will still have a regular source of income. There are a number of ways that can keep you in the right track with your finances. It is fun to spend but you need to have discipline with your money. Having a budget to guide your spending habits will be the best decision you could make today. This will help you identify your sources of funds and where your money goes and you can therefore work on cutting down on some of the expenses that seem unnecessary. Avoid impulse spending. If you have to spend outside your budget, make sure then it is very necessary. Since it is easily said than done, you will need to lay down a plan rather than just saying it that you are going to save. Taking an insurance policy is also a good way of saving.
Choosing the best way to save
There are different options available for anyone who intends to save. Choosing the right one may be a hard task but with some advice from a financial adviser all is possible. However, it is advisable to diversify your savings to avoid the risks involved with carrying all your eggs in the same basket. For example, you could choose to keep your money in the bank but this should be guided by the amount of interest they promise to give you, the minimum deposits required, how much you can afford to deposit in the bank per month and whether you can afford what they expect as well as whether you have access to your money when you need it among other factors to put into consideration. Another method that you can use to save is by buying shares from companies. This assures you of dividends. You can also buy assets like land which you could sell in future at a profit. You should however make sure that these assets are only capable of appreciating to avoid losing your money in future.
Get paid what you’re due
It’s imperative you make sure you’re paid what you’re due. If your company uses a less than reliable payroll package, mistakes could be made. About 10 years ago I decided to get my wages checked as they didn’t seem right, after working out what I should have received on a bit of paper, the lady dealing with the wages told me I was £80 short. Had she used the right payroll solutions in the first place, this would not have been an issue.
Work out how much you’re owed, and make sure it tallys with your wage packet. Getting the right amount of money each month will help you to save even more cash.
03 Aug 2014