There is no good time to save money. The earlier you begin, the better it is. Despite knowing the likelihood of unforeseen expenses, making no efforts to put aside money will be an imbecilic move. While you know that your job is not secure, living cost is soaring and wages are stagnant, stashing money for a rainy day is paramount.
Studies have discovered that around 70% of the population struggle to save money. However, easy lending procedures account for sluggish attitude toward saving. As a big expense catches you on the hop, you rush into taking out 12 month loans with no credit check from direct lenders. Features like no collateral and no guarantor trickle the fancy of as many borrowers as possible.
The purpose of online lending is to help you tide over during emergency, which is why the lending procedure is convenient. It does not mean that saving is not worthwhile. Studies also suggested that some people struggle to have enough cash to set aside. High utility expenses low wages are to blame for nil savings. The financial advisor of Big Loan Lender provides some tips to build money saving habits below.
Stick to your budget
Transforming your habits can be demanding, but no pain, no gain. You have no control over some situations like rising living cost. You do not need to think about it. You should rather focus on ways that can eventually help you meet your financial goals.
The first step is to take a deep look at your financial situation. Have a record of all of your monthly expenses along with income sources and then figure out your net worth. You are in a better condition so long as you have a net worth. However, you are likely to be in the red if outgoings are more than incomings.
You will have to put some barriers to your spending to ameliorate your financial situation. Look back to your expenses and divide them into two categories: discretionary and mandatory. The next step is to cut back on the former expenses.
Auto-transfer money to your savings account
Setting aside money in a piggy bank is an easy way, but many people fail to overwhelm the temptation of dipping into them. The best strategy is to link your savings account with salary account. Use an auto-debit mode to transfer a fixed percentage of your gross salary to your savings account. Set a financial target and accordingly decide the transfer limit.
Plan your purchases
Spending money to fund impulsive buys is also one of the significant reasons for people failing to meet their savings goal. You will have to be more careful with your spending if you do not want to fall into debt. The rule of thumb says that you should buy things that you need and they are urgent. As long as you can put off, you should get by with things available. Make a list of what you want to buy and how much you are going to spend. Try to stick to it and make sure that you do not go beyond your budget – no matter how much you are tempted to make impulsive purchases.
Investment can grow your money faster. From stocks to real estate, there are several investment options. Of course, property investment is worthless to think about when you are running out of money. Start with smaller investments like shares and bonds. They can help you earn interests and dividends. Use online apps to make investment decisions. You will have an acute vision that where your money is going and how much it is adding up. You should also consult an investment advisor who could suggest you a better option as per your financial situation.
The bottom line
If you want to save money, you will have take stock of your spending. People fall into a debt cycle because they continue to borrow without realising the importance of having savings. Cut down on the cost of subscriptions, night outs and dine outs. Track your expenses weekly, biweekly or monthly to know you are within your budget. If you have a debt, try to pay it off before starting setting aside money.