How to effectively save money written by: johnie01
Saving is a smart financial move; it?s necessary to make progress to the next level, it doesn?t matter where you are in your financial journey. But we all know that however, only a few of us have a good saving habit. Take for instance in America; 18% of Americans saves nothing, and half of the income earning individuals are just saving 5% of their earnings. Only 25 % of the populations can save at least 10% of their income, and what?s the recommended saving percentage? 15 percent! So to cut it short, we all do not have good saving habits. So how can you effectively save money?
Set reasonable saving goals
Having some saving goals makes it easy to get started with saving journey. But that?s where many people go wrong; they will set a saving goal, but one that is far beyond their reach. You need to set goals that are within your reach to motivate yourself to save further when you achieve these goals. Start with short term goals, achieve them first then proceed to long time-saving goals.
Sometimes it?s just impossible to avoid debt, but if you can, avoid accumulating new debt. If you have to take a loan, try as much as you can to take what you need, when you need it. If you are trying hard to save money on a tight budget, but you are still carrying enormous burdens of debts, then saving will be near impossible. So, start with debt elimination, but be strategic. Consolidating debt is one way you can start to pay your debts quickly.