Saving is a method of financial management that aims to manage reserve funds in the future. Savings also play a role in ensuring your financial stability should something unexpected happen in the future. Indirectly, saving can help you realize your financial priorities.
Starting a saving activity plays an important role in financial flow, especially for those of you who are just starting to work and have their first income. In fact, saving is not always a simple habit for everyone even though they already know the many benefits for the long term. This may become more difficult if you don’t start pushing to save in the right way.
Saving is not just about what proportion of money you will set aside. Enough with that, saving is all about forming persistent habits. The key word is consistency. On the web, there are many easy ways to save a lot according to your circumstances. If you’re still having trouble setting aside money, there may also be something wrong with the way you’re saving.
The Cause of Unwise Savings
Some of you may have started to get used to saving, but have you used the right method? The following signs indicate that you are not saving properly.
- Savings Account Combined With Daily Account
If your bank account remains the same as your daily necessities account, it is often said that your savings are not the right way. By combining savings and pocket money, your account balance will get bigger. This actually encourages you to spend even more. rather than saving, moreover, the amount of savings will be reduced due to out-of-budget spending.
- Savings Account Not Running Stable
After you have a separate bank account, the next step is to make sure there is no other activity in the account besides saving. Having a large amount of savings can encourage you to spend it every once in a while.
In an emergency and urgency, you will still use your savings. As long as the value is not greater than the amount you save each month. If you’re not in an emergency, but you continue to use your savings frequently for tertiary needs or luxury items, there’s certainly something wrong with the way you’re saving.
- Setting aside income for savings is not correct
Before receiving a salary, you should make a budget to calculate the portion of savings, spending, and other social activities. You should simply set aside about 10% -15% for the allocation of savings. Ideally, the savings percentage does just this.
Along with an increase in salary or additional bonuses, the value of the savings and therefore their percentage must also increase. If the nominal amount of cash you save remains very small, while your income increases, there could also be something wrong with your spending budget.
Are you still experiencing any of the signs above?
If so, now is the time to vary the right saving habits. It’s never too late to start improving financial management.
This is the Right Way of Saving Consistent with Financial Experts
Of the many ways to save money, here are the sources from financial experts. Reporting from the GoBankingRates website, this is often the right thank you for saving consistently with a financial expert.
- Set Automatic Debit From Salary Account to Saving Account
Farnoosh Torabi, a writer and financial expert points out that saving with automatic transfers is the best way. In addition he also recommends that a minimum of 10% of your salary should be transferred by auto debit to a bank account.
That way, you won’t have an excuse to forget to save multiple . It also avoids you being tempted to spend your earnings before putting them into savings.
Set the transfer amount and transfer date consistently which is directly transferred to the bank account. By applying this method, you have learned to save a lot of discipline in an easy way.
- Start Saving Small But Regularly
According to Clark Howard, a consumer expert, saving should start from a small amount first, but on a regular basis. Not many of us can save big, so start small.
If you are not fluent in allocating 20% of salary savings, you can start with 2% of salary. However, make sure that the share increases every month until it reaches at least 20% of the salary.
Howard also explained that the first jobber should be prepared to live off half his salary because he doesn’t have many dependents and expenses.
- Save Money Change Shopping
Ric Edelman who is the Chairman and CEO of Edelman Financial Services provides a special trick to be ready to save well. According to him, collecting change in the form of change is often done to buy goods with too large a value.
For example, change after shopping at the supermarket, if collected, is often common to buy coffee and lunch. That way you will save on lifestyle expenses and manage to save a lot of savings allocations. This change will indirectly help you reduce the use of debit cards and credit cards to buy a lifestyle.
- Create a Separate Account
Ligwina Hananto, a financial planner quoted from Womantalk, emphasized the importance of separating a savings account from a daily account. By segregating your bank account, you have money saved to use in an emergency afterwards. You can choose a special account type for savings.
- Set a Savings Goal
Ligwina explains that setting aside money for nothing is a simple thing to try. Don’t just set aside money, but set your goals for saving. Start saving for the items you are interested in first. for example, traveling, on pilgrimage, or shopping for something. When the habit of saving has been successfully formed, it will be easier to set goals.
That was the right way to save for the future. Hopefully this article can help you in managing your finances. Both individuals and families.