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Money Know-How

A Quick Guide To Building A Saving Habit

A Quick Guide To Building A Saving Habit

A Quick Guide To Building A Saving Habit

We, humans, are complex creatures. We easily let go of the same things we toil for in life. Take money for example. We work so hard at our jobs, be it working odd hours or for immensely long stretches of time – all of this and more to bring home a decent earning. But we end up spending it all the moment we receive the money we worked so hard to earn. Though we are definitely getting a product or a sense of achievement and confidence in return, it does not really justify our spendthrift mentality, does it? So, what’s actually wrong with us? What’s wrong with saving up?

For those who regularly save, know what a blessing it is. But is not so easy to build a regular habit of saving. Here’s how you should develop a saving habit:

Address What You Are Saving For
A goal without an action is meaningless and vice-versa. If you don’t know the reason behind you trying to build a habit, then you’ve not figured out life yet. You need to have clear broad motives when it comes to saving money. Let’s consider some of them:

  • Saving For An Emergency: What if a family member is in an accident? What if your house caught a fire? Bad days generally come uninvited but their impact stays for a long time. To access quality services and provide the best care to your loved ones under stressful situations like above, you need to plan and save up.
  • Saving For Education: Are you fond of learning? Whether it is access to books, expert faculty or a reputed institution for good guidance, money is required at almost every step. Education is not a low-cost affair when you want to pursue your dreams till the very end.
  • Saving Up For Recreational Activities: From a short visit to a shopping mall to planning long vacations across the world, your savings can help you relax, enjoy your time and explore life to the fullest.
  • Save Money For Old Age & Retirement: Every old man was once young. But old age brings with it a fragile body, fewer work opportunities and ultimately retirement. The secret to enjoying this time of old age is with your entire family. This is only possible if you’ve saved enough for yourself. Save smartly so that you won’t need to look to anyone for money, giving you the capability to take some of the best life decisions in your twilight years.

How To Get There
Once the goal is set, you need to find the best possible way to achieve it. Here is what you can do:

  • Keep Everything Within The Budget: Except for a few times, whenever you’re out to make a purchase, always assess the price of the product beforehand through research and pay the right price for the benefits received. Set a fixed budget and make the most pocket-friendly and high-quality choice within it.
  • Keep A Record Of Your Expenses: No matter how sharp your memory is, there is a good possibility of you missing out the price of the things you buy. From everyday home supplies to availing common services, it’s hard to remember the exact amount. Thus, if you record all the spending in a diary, it will be of great help to assess any unusual increase in expenses.
  • Set Your Priorities: As suggested before, saving can help to deal with many challenges with ease. But with so much to plan, it is necessary to prioritize. You should know what needs your attention the most.
  • Choose The Right Tools: If most of your savings goals are short-term, try saving money with a Savings account or certificate of deposit which locks in your money at a particular interest rate for a specific period of time. In case, you have long-term goals, think about stock markets and mutual funds.

Also Read: 10 Offbeat Things People Do To Save Money

What Are The Top Barriers To The Habit?
Saving is a good habit and thus, it’s not so easy to develop. Here are some of the challenges that may come in the way:

  • Low On Discipline: If you do not have discipline, you cannot spend wisely. If you are a careless spender, discipline should be your primary focus.
  • Being In Debt: It may seem harmless to borrow a little amount of money but you never know when it will limit your ability to save. This is simple to understand because whatever is being saved from your or the family’s income will be first used to clear the debt.
  • Love For Brands: If you’re fond of everything shiny and rely heavily on branded products, saving will be difficult for you.
  • Lack Of Purpose: Maybe your existing wealth seems enough to give you a good life and support those dependent on you. But it’s time for a reality check. With inflation and a host of unforeseen challenges life can throw at you, it’s best to save with for a certain purpose like your kids’ education, parents’ health, buying a new car or house.

Coming out of your comfort zone is never easy. But it does help you improve your personality and abilities to lead a better life. Building a habit to save is a similar experience which is uneasy at first but goes a long way in bestowing you with lifelong comfort.