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This morning I got a call from my elder brother complaining about a financial crisis he's in. How he has a lot of debts to offset and is still trying to apply for a loan.
This problem wasn't pleasant to hear, so I tried my best to help him. But one thing I noticed about him was his bad saving habits. He never cultivated the habit of saving, which I have discussed with him several times, but refused to make any amendment, because he believes, "more money will come, so why to hoard it?" I find that ideology to be lame, just as this saying," Save for rainy days." If you practice this, then be set to accept a lot of rainy days. Instead, "Save for a goal or financial freedom, and not for rainy days."
My brother's financial problem made me reflect on this thought. "How are your savings? How do you manage your savings?" Yeah! What a thought. But still, a lot of us here have poor saving records or no zeal towards saving. While some have certain targets or plans on why they save.
A Lot of people have reasons why they save which are best understood by them. Whether you're saving to become a house owner, for investment, for medical treatment, for retirement, or for other purposes. Although educating people about proper budgeting and saving for an emergency fund is the right way to progress.
I remembered when as a child, curious and playful at that time. Mother will instruct us to keep any money given to us by visitors. Since then I've built that habit of saving. Although it was hard because the urge to use them was there, no doubt that feeling will always come. But creating and building your saving habit /account is a lifesaver, a life skill that will surely benefit you at all times. So I'll share with you some tips on how to manage your savings.
Don't put all your income into savings.
These tips may look strange or confusing, but many have fallen into deep debt by practicing this. If you put all your income into your savings account, you can set yourself into failure, just as you are saving too little. Imagine saving with a lock that only opens once you reach the fixed date. Am sure you understand the outcome.
Therefore, the best way is to set the right proportion or a modest saving plan, which is 20% of your earnings.
Set a saving goal.
It's very important to have an achievable goal, established that you're working towards. It's not just about committing to saving; you have to know, why are you saving? What you're saving for and how much do you need to accumulate to reach your goal?
Save from every source of income and Treat it with a limit.
Whatever your source of income may be or come in, no matter the source or how little it might be, try and set aside 20% of every money you earn into your savings account.
Also dipping into your savings account should only be a desperate remedy. Your savings money should be used only for the goal you set.
If your debts keep getting harder, try and establish a saving culture, and set a plan for financial stability. I hope this post was helpful.