One of the most difficult areas of money management is to budget for savings. Everyone knows how important it is to have a nest egg set aside for emergencies. How many of us actually prioritize savings, though? The most common reason for lack of savings is, I can’t afford it. The fact is, you can’t afford not to.
Before you pay a single debtor, pay yourself first. Put a predetermined amount away for savings. Whether 20, 10 or even 5 percent of your total take-home pay, do this each payday before anything else. Treat savings with the same respect you show your mortgage or rent payment.
If money is really tight, find a way to save on another expense. Food budgets are the easiest to pare down. Limit restaurants, pubs, have a meatless meal each week, eat beans, rice and eggs for a main course. Of course clip coupons, but never use them to purchase an item that isn’t already on sale for the week. Don’t fall into the coupon trap of buying high priced convenience items you would never get in the first place. Prepare a weekly menu using the sale ads, do not impulse buy, and set a goal to spend less than usual so you will have money to put in a saving account on a regular basis.
Another way to free up the equivalent savings is to take stock of your mobile plan, data plan and anything else that you pay monthly with usage options. Are you paying for texting while not using it? Do you purchase a certain amount of minutes but rarely use them? Perhaps a pre-paid plan would serve you just as well.
Get an emergency savings fund started immediately. The last thing you want to do is find out why you need it. |
