Habit of Saving Money
Cultivating The Habit Of Saving Money
Saving must be a life-long habit. You cannot slack off for a single day. One should have the habit of saving money. There are different ways of doing so. The following article includes the need and importance of saving money in detail.
Once you are able to cultivate the habit of saving money, you will get rich.
Saving money is actually not a terribly difficult thing to do. Many laborers earning the minimum wages can save enough money to buy a house and send their children to university.
How do they do that? How do they manage to save enough money on a low salary?
They are able to do so because they have a very good habit of savings. You can cultivate the habit of savings too.
The first step is to open a separate savings account. This bank account becomes your untouchable. You are not to withdraw from the bank account for any expenditure. You can only withdraw the money for investment.
You may want to automate the savings process by instructing the bank to transfer a certain amount to that untouchable account.
You can get aside a fixed amount to be deducted every month. The best time for deduction is just after your payday. You get to save the money before you spend a single cent of your earnings.
Another way to cultivate the habit of savings is to get a piggy bank. You do not need to spend money to get a piggy bank. You can use any old can or tins as piggy bank. Even the empty can of soft drinks can serve as your piggy bank.
Every evening when you reach home, feed the loose change into the piggy bank. Once you are able to fill up one can, prepare another can to put your loose change.
You will be very surprised to find how much money you have saved through this old piggy bank method.
If you have school going kid at home, you can teach your kids to manage the family finance. Appoint your kid as the Chief Financial Officer in your family. Plan the family budget with your kids, including their own pocket money.
Appoint one of them to take charge of the budget for groceries, appoint another kid to take charge of clearing the outstanding debts, and appoint the third kid to take charge of the savings.
Teach them the difference between wants and needs. Teach them the importance of savings. Savings must be used only for emergency, not for buying all the toys and other things that are not essential to life.
When your kids remind you not to overspend, please listen to them. You are making them feeling very important, and you are teaching them to take charge of financial health of the family.
If you are tempted to buy anything, ask the kids for permission. If they say no, there is no budget for it, please do not buy.
Having the whole family committed to a budget is a fantastic way to save money. Once everyone knows the importance of savings, they can remind each other to save up for rainy days.
So folks, cultivate the habits of savings and enjoy the security of abundance cash in the bank.