The art is not in making money, but in keeping it – Proverb.
As avid savers know the more you save the quicker it accumulates and grow. There is no better satisfaction in getting into the routine and watching your money grow.
- Set up a saving account: Shop around to find a bank/financial institution that offers you a good interest on savings, you can also consider different types of savings account that yield the best interest and little to no income tax.
- Have a plan, make it a routine and stick to it: Decide on the amount you would like to save and how often, for example, decide to save 10% of your salary every month, set up a direct debit so this happens automatically. This way you won’t skip or miss a payment.
- Keep track on your spend: Make a budget at least weekly or monthly to help you keep tabs on your spend. Use phone apps like wallet, my budget book, a money manager can help you keep track of your spend
- The best time to save: The best time for you to save is on payday, after paying your bills and the necessary expenses it is easier for you to pay into your savings before you have time to spend it.
- How much should I save: Start with whatever extras you have left after your bills and necessary expenses have been paid if you find it difficult to save anything, create a budget, review it regularly and try to cut out non-priority expenses. Once you start with something, make a push to add a little bit more (An affordable amount) and then make it a fixed amount e.g. 10% of your salary every month.
- Let it grow: Once you start saving routinely, you start earning interest, which is paid into the same account. The interest you earn starts to accumulate, this then becomes money earned and your earned money brings in more interest. This process is called compound interest and over time it only builds up; and for this reason, only you should let your saving grow and not go into it.
Deciding to be financially free takes conscious effort and once you start and stick to it you find that it isn’t so bad after all and there isn’t a greater joy than seeing your money work for you. Start a habit of saving today, teach your children how to and you will leave them a legacy. Are you an avid saver? Share your tips with us below.
Disclaimer: We are not a financial institution nor do we provide any financial consultation this article only expresses our personal saving habit.