It’s always ideal to cultivate a savings culture, but it’s never easy. Savings entails depriving yourself of certain desires and pleasures, which require a great deal of self-control. Many people want to save, and many people wish they could save, but only a few do.
Here are six ways you can cultivate a savings culture:
1. HAVE A BUDGET
A budget would help guide you on what is important, detailing your needs and wants, with a clear picture of where to make adjustments. Saying you will save and thinking about saving is not enough -You need to be intentional about what you do with your money.
2. CONTRIBUTE MORE TO YOUR RETIREMENT
Stop procrastinating when it comes to retirement planning. It’s never too early to start thinking about retirement, even if you’re in your early 20s or 30s. Review your finances to see if you can increase your contributions if your employer offers an RSA plan, and you already participate in it. Unlike a bank savings account, the money in your RSA is not liquid. You can, however, use this fund to cover expenses if you lose your job or face other financial difficulties.
3. UNDERSTAND THE CONCEPT OF CASH FLOW
You need to understand what it is, how it works, and what your household outgo looks like. Review your income and expenses and see where your spending habits lie. Be intentional about making changes so you can save more.
4. MAKE YOUR INVESTMENTS AUTOMATIC
One of the easiest ways to get into the habit of saving is to set up auto-debit. If you wait until the end of the month to start saving, there is a good chance you will run out of money. Make it automatic by having funds deducted from your salary or directing a portion of your deposit to a savings account. You can keep several savings accounts open for different goals. You’re more likely to keep your savings if you can see them grow.
5. PRETEND YOU ARE PAYING OFF A LOAN
Pretend you’re paying off a debt to get your mind in the right mindset for saving. Keep putting money into your savings account every month. Even after you reach your set goal, never stop this habit.
6. START NOW
Keep in mind that no matter what your goal is, you should get started right away. There will always be something competing for your resources. Regardless of what else comes your way, saving for the future should always be at the forefront of your mind and finances.
