Most of the time we spend more than we might have initially budgeted and find ourselves in a fix.
A lot of times we overspend and shoot our budgets when we can easily do simple things like, purchase quality things made locally, employ the services of people we can afford e.g choose a professional builder that is local to your area.
The truth is almost everyone is caught in the euphoria of being in the marketplace, especially at times when the pocket is very full and savings is almost impossible.
Even when we do not have the cash at hand, technology has made it easier with the use of POS machines. Cashless policy right? This is one of the major disadvantages.
…the ability to be able to spend money when it is not at hand.
I have been there and most of us, have at one time or the other found ourselves in this territory.
I imagine it to be about one and half decades ago before the advent of ATMs and POSs’.
The cashless policy meanwhile, in its true sense, tries to tackle the unnecessary transportation of huge amounts of cash but will it help you cultivate a sound savings culture?
Table of Contents
1. Be Prudent
This is mostly confused with stinginess. But it is totally different. Being prudent simply means resourceful application. Stinginess is total hoarding.
Prudence involves more of putting money only in things that are of value and are bound to yield interest in the long run.
It takes dogged determination to do this. The truth is most people will see you as being stingy but do not bulge as long as you have good enough reasons for it.
2. Do away with Impulse buying
Impulse buying involves buying without planning. Many ladies are always tempted to add that scarf or jeans that appears very fashionable to the list of already bought items despite not planning for it initially. It will only do one thing – make you spend beyond your budget.
3. Make some money inaccessible
This is tricky. Most banks have platforms for this type of savings.
In the long run, the beneficiary of this scheme is YOU.
Keeping money in accounts that remain inaccessible (except on special conditions), may be the way to ensure savings become worthwhile in the long run.
Personally, I do not use the regular banks because I still find a way around it.
However, I use Piggybank. A mobile app that either debits from my linked bank account directly or I deposit manually into the piggy bank.
It is set up in such a way that I do not have access to the funds except for certain days.
If I try breaking the piggybank, I face a penalty of forfeiting a percentage of the interest accrued.
4. Have a definite goal
More often than not, our minds are fixated on those things that are precious to us. We always remember them and even dream of them while we sleep.
Having a definite goal is good.
Working towards accomplishing them is another hurdle and this where the saving culture comes in. The goal alone will always ensure that we cut off some things we would naturally spend money on.
The benefits of a sound savings culture are endless. It’s time to consciously work on creating a savings culture.
Personally, using my piggy bank app, I create different saving targets for different periods of time and this is a major driving force for me.
Sometimes it is geared towards investments and it is been helpful.
I hope you’ll take this seriously too so you can attain the financial freedom needed.