We all know how important it is to save for a rainy day. However, most of us don’t. It could be because of lack of discipline, not having given it much thought or just not understanding the value of saving.
On the other hand, you could be living from paycheck to paycheck and just don’t have enough to save. Whatever the reason, it’s important that you try to put some money aside so you can be prepared for a rainy day. You just never know when that emergency fund will come in handy.
A unexpected job loss, health issues, an accident or car problems are incidences that can leave you in debt if you don’t plan for them. However, with a decent saving, you can easily take care of such issues. When you save money during good times, you will find getting through the bad times easy.
Even if your financial situation looks great right now, it can change instantly. You can’t really be sure that you will always have a job especially in this uncertain economy. And, if you’re left jobless for a few months, you could end up in debt which can leave you financially crippled for many years. So, if you generally find it difficult to save money, these three tips can help you get started:
Three tips to help you save
1. Start small
You have to start no matter how little. Starting is the most difficult step and so you have to start small. Once you’ve started and are consistent, start increasing your savings amount. The more you save and see your savings growing, the more you will be motivated to increase the amount you’re putting aside.
2. Make saving a priority
Treat your saving as a priority, not a choice. Just like you have to pay your bills every month, you also have to set money aside for a rainy day every month. The more disciplined you are, the more money you will be able to save.
3. Cut down on expenses
Whenever you can, try to limit your expenses. So instead of buying take outs three times a week, buy only once. You can also make your own coffee at home , instead of ordering from your favorite cafe. If you smoke, try to cut down or quit. It’s an expensive habit. You can even start by saving the money you would spend on cigarettes. It may not seem like much right now, but in the long run it can add up.
Your aim should be to have enough money in your emergency fund to cover at least three months of expenses.
By Shimanga Mubitana