Saving a part of your money is a smart way to be financial independent. A lot of people want to save money every month but they do not just know the best ways to go about it.
No matter how much you earn every month, you should endeavour to save a percentage of your salary and stick to it every month.
Smart strategies you can use to save
A man who does not save is like a dead man. Below are some strategies you can use to save money:
Have a budget
A budget shows how you will manage your finances can assist you to save money. Your budget should clearly show your expected income and expenses. You should also budget the amount of money you will save within a specified time frame.
Automatically save every month
You can ask your bank to automatically deduct an agreed sum of money from monthly inflows into your bank account for savings into another account.
You can also ask your employers to deduct a percentage of your monthly salary and save it in a retirement savings account.
Automatic deduction of your salary as savings can be a smart way to save money.
Think for 24 hours before making purchases
When you feel like spending money on things that you do not necessary need, why not wait for 24 hours before buying it. Waiting for some time may help you to shelve your decision to buy items you do not need. This may help you to save the money that you would have wasted on things that are not needed.
Join a savings club or cooperative society
There are a lot of savings club or cooperative societies you can join to start saving. Some cooperative societies will also pay interest on the savings you have with them.
Savings clubs educated and inform people on the benefits of savings. This can spur you to save more money.
Partake in savings competition
Partaking in savings competition can be very beneficial to you. You will learn how to save money. You can go on the internet especially the social media to search for savings competitions.Get the Secrets of How to Earn Money from Side Hustles
Open a retirement savings account
I advise people to save savings towards their retirement from the first day of work. The first step is for you to open a savings account and ask your employer to pay a part of your monthly salary into the account.
You can also make contributions to your retirement savings account. Most retirement savings account will not allow you to withdraw your savings until you attain a certain age or when you retire.
Endeavour to save your loose change
Little drops of water make a mighty ocean. A lot of us have loose change in the form of coins and currencies in small denominations. Saving this loose change is not a bad idea.
Set savings alarm on your mobile phone
Setting an alarm to remind you of when to save every month can be a fantastic money saving strategy. You can use your smart phone or any mobile phone to set the alarm.
I know people who use this method to save money every month.
Investing in commodities like gold, grains, cocoa, sugar and silver etc can be a good way to save money for the future. Short term investment in commodities can be too volatile for you if you are not an investment expert. However, long term investment in commodities can be very profitable if done in the right way.
Invest in securities
You can save by investing in equities, bonds and treasury bills. You need to consult a financial adviser to advise you on the best type of securities to invest in, especially if you are a novice in investment management.
Invest in real estate
Investing in real estate can be a great way to save money. You can invest in land, building and farmlands etc. Investment in real estate should be seen as a long term investment. However, short term investment in real estate can also be very profitable if you know how to play in the market.
How do you save money? Will you be nice to share your money saving strategies with us in the comments section?
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