Savings is typically used to preserving money for future use by putting it on deposit. This is distinct from investment where there is an element of risk. Savings is important because there will come a time when you will have needs to meet but will not be earning money anymore. You therefore should use the time when you can earn to raise funds for the time when you are not earning anymore.
When do you start saving? Some people wonder when is the right time to start saving, some are of the opinion that they should start saving when they start earning enough, but that is a bad idea, it is good to start saving early once you start working and when you are young. Starting early leads to a huge accumulation of wealth that retirement.
To be able to achieve the habit of saving regularly successfully, you need to do the following:
Live within your means, cut your coat according to your size, and do not let others determine how you will live your life. Be realistic and stay off expenses you know you cannot keep up with.
Do not make credit a part of your life. Shy away from salary advances, credits cards and any spend now, pay later schemes.
Take full responsibility of your finances.
Just be content with the little you can afford.
Do you know that it is not what you earn but what you keep that determines your financial success?
A lot of people earn fat paychecks but are worth nothing and have nothing to show for it, they blow every dime they earn. Don’t be like that. Saving is important, once you earn the money, set aside what you will save before allocating the balance to your needs and cut those needs according to what the balance can afford.
You can start by saving what you can afford, and then gradually increase it. Put the savings where you cannot easily reach it. Strike a balance between your saving and consumption so you are not tempted to break your saving. To help you have enough to save, cut your expenses, take economy class instead of business or first class when flying, draw up a list before going for shopping and stick to it
