Financial Tips for Saving Money

Money has never been enough, but this is never an excuse not to save for the future. It can be quite difficult trying to wade through the waters alone when it comes to saving. However, with the help of a few expert tips, you can invest in your future by making the right choices. If you have been thinking of saving a few coins but do not know where to start, here are a few pointers to start you off.

Work using a budget

Planning how to spend your funds is one way that helps you to track your expenditure. Using the 50/30/20 rule is the best way to start your budgeting journey. This rule suggests that you spend 50% of your income after tax on needs, 30% on wants, and 20% on savings and debt repayment.

While this method works fine, you can tweak it slightly to make things easier. Instead of using 30% of your income on wants, you can reduce the figure to 20% and save 30% instead. The old-fashioned pen and paper would work just fine when you want to allocate cash to each docket, but you can go the smart way and use free budgeting apps available online.

Differentiate between needs and wants

Have you ever walked to a store and picked so many things, only to get to the counter and find that you do not have enough cash? In such a case, you have to get rid of some things from your cart so you can check out.

The same principle works when choosing between wants and needs. Evaluate the items that you cannot live without and those that you can go without. Avoid buying items that you may regret spending your cash on.

Don’t use credit cards unnecessarily

Let’s face it, credit cards are convenient even though they can pose a threat to your financial stability. You can easily become a slave to easy access cash, especially if you are a spendthrift. Choose specific moments when you will need to fish out for your credit card if you want to be on the safe side.

Unavoidable emergencies should take precedence when you make this choice. Otherwise, using your black card liberally is one way to dive deep into unnecessary debt, something that you should avoid at all costs.

Set saving goals

Saving without a plan is catastrophic since you do not know what you’re saving towards. You also don’t dedicate a particular amount of cash towards this exercise each month. Saving goals help keep you on track and dedicated to saving each month. It also enables you to achieve your goals in good time.

Talking to your bank about setting goals is the perfect way to go about this, but you can always use budgeting apps if you do not have the luxury of paying someone to map the savings plan on your behalf.

Save using a fixed account

A savings account is a single tool that helps you achieve your saving goals and track your progress simultaneously. At Karura Community Sacco will give you several saving account options depending on your needs, but if you are not in any hurry to use up the cash, investing in a fixed account like Mavuno Savings Account is profitable. This account has the best interest rates as opposed to others, and it limits your access to the funds until maturity.

On the other hand, if fixed accounts aren’t your cup of tea, you can opt for other savings options such as purchasing sacco shares and still enjoy significant benefits from it.

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