One of the ways to become financially safe is making savings as a key aspect of one’s financial life. so sad that a whole lot of people are not doing it.
In a popular post online, the writer opined that more than 60% Americans are not saving enough for life after work.
Worldwide, it appears saving in this time is on the low side of the curve.
Research has however show that there are about 5 money habits that make it so hard that you can’t save.
Here are the 5 habits; hope you will use them positively to improve your savings:
- Not tracking your spending
If you’re not tracking how much you average on purchases like a cup of coffee, a bottle of drinks, some suya, and things like that per month, you might be spending too much.
- You’re paying yourself last
If you’re waiting until the end of the month to see how much leftover money you can save, you’re doing it wrong.
Transfer money into savings as soon as you get paid; that is when you can then rest and work hard so that the leftover money in your account will be strictly for bills and some fun.
- You’re not getting on top of your debt
If you have any high or low debt, you need to be tackling that as soon as possible (ASAP) to get your financial health on track.
in fact, there’s no reason to be setting money aside in savings if you have a huge debt to pay and often if it comes with a sky high interest.
- You only have one savings account
Stop living in the ages, you should have more than one savings account. Remember there are lots of things to save for: Emergencies, retirement, and big life purchases, like homes and cars.
Create a separate savings account for each of your savings goals, and designate a set amount of money to go to each account every single month
- You haven’t automated your monthly savings
Sometimes or often, we people are in frenzy when money comes in. So, automate! First, set your savings goals and then set up automatic transfers to your savings account(s) as soon as your paychecks come in.
We’re only human, which means it’s all too easy to be tempted by a new gorgeous pair of shoes or spontaneous vacation.