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Saving: Have You Been Doing It Wrong?

Finance & Money

Posted on Wednesday, June 9, 2021

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With the constant fluctuation of the cost of living, it gets challenging to remain disciplined about saving. With the right guidance and habits, you should be able to get back on track and start to save the right way.

 

What are you doing wrong?

 

First things first, you’re actively trying to save and you deserve a pat on the back for your efforts. Most people were never taught how to save money, so if you’ve fallen off the wagon, don’t be too hard on yourself. With the right money-saving tips, you could become a pro.

 

Now let’s dig deep and figure out why it feels like you’re not progressing. What are you doing wrong?

 

  • Do you have a financial plan? Having a budget is so important for your finances. You need to know where your money is being allocated to in order to ensure you are living within your means. It also provides clarity on what you can and cannot afford.
  • Are you overspending? Failing to track your spending and keeping a budget may put you in an awkward position. If you are not conscious of how much things cost, you may find yourself leading a lifestyle that’s hard to maintain. 
  • Are you borrowing too much? Using credit cards, loans and overdrafts without sticking to a budget and keeping track of expenses can work against you.
  • Do you have an emergency fund? The rule of thumb is to save three to six months’ worth of your salary so that if you should experience an unforeseen event such as losing your job, you can cover your monthly costs for a period of time. 
  • Are you honest with yourself? Turning a blind eye to the reality of your finances makes it harder to plan. Note your habits. That way, you’ll be better able to see where you need to improve. You can also go the route of downloading a budgeting app to assist you. 
  • Do you have a savings account? Having a savings account helps keep track of your savings. It also gives you an opportunity to allow your money to grow

 

Budgeting apps

 

Don’t rack your brain trying to balance the numbers, you’re already doing a lot trying to figure out how to budget and save money. Thanks to how advanced technology has become, we have our banking apps and budgeting apps to help. Some budgeting apps to consider are:

 

Having a positive mindset towards money

 

Having a positive outcome with your finances requires you to have a positive mindset. There are things you can implement to change your views on money that can also positively impact your relationship with it.

  • Forgive yourself for past financial mistakes; you need to start on a clean slate. 
  • Set financial goals for yourself – start small and work your way up.
  • Include things that make you happy in your budget. This way, you’re bound to be enthusiastic about your budget.
  • Learn more about how to save money, handle it and grow it.

Choose quality

 

While something may be affordable, look at whether it will last you as long as you need it to. We often make the mistake of buying goods for their affordability as opposed to their quality. Even if an item is low in price, you might find that it ends up costing you more to replace it regularly (the amounts accumulate over time), whereas a higher-priced but better-quality version is likely to last longer and cost you less in the long run. It’s important to look at the long-term benefits and advantages of buying something, as this may just save you more money. And there’s no rush. Save for that designer bag rather than buying one that’ll fall apart in no time and need replacing.

 

Saving is the first step to financial freedom. Make it a habit and watch your money work for you and grow. Happy saving!

 

The information in this article is for information purposes only and does not constitute professional advice.