3 saving tips for beginners
As Napoleon Hill in this classic “Think and Grow Rich” once said that the “saving habit” is a foundation on which all our financial success depends. However, the most challenging part about saving money is to start saving. In the following article, we will discuss the various ways in which savings can be tackled.
Here are some of the points that we will discuss:
- Stop hoarding and get rid of the things you don’t need
- Quit using credit cards or at least keep the usage to a minimum
- Put needs before wants before every purchase
Let’s elaborate on the above-mentioned points.
- Embrace minimalism:
While you may have tons of reasons to buy that extra bag or new pair of Adidas, it is crucial that you draw the line when it comes to needs and wants. The more finances you save, the better you can invest in better savings schemes.
If it is absolutely necessary to buy these items, then it is crucial that you buy things that come with a recoup value. So that once the need for these items is met, you can sell them and use the money earned to attaining your future financial goals.
- Use less credit:
If you tend to overspend and often exhaust your salary before you are half-way in the month, that’s when credit cards come in the picture. But, credit cards are just a temporary solution. Once the credit bill starts piling up, credit cards become a liability. Hence, it is crucial that you budget your month in a way that you don’t exceed your spent than your earnings. Also, keep a certain amount of money away each month and invest it in your monthly savings plan.
- The 30-day rule:
Another way to going about saving up is by avoiding instant gratification. So, the 30-day rule says that you have to wait for at least 30-days before you make the final purchase. This gives you the time to prioritize your needs and your wants.
Many times, you may want something, but after a month, the need for it may not be as much as it was before. You may not even need it anymore. In this process, you end up saving money. This saved money can then be invested in one of the best saving schemes in the country.
The process of saving money can be a tedious one. It is especially challenging if you tend to spend a lot. While the initial days of the process may be a struggle, eventually you will become habituated to save a part of your income, each month.
