WorldExecutivesDigest.com | How To Get Started With Savings | Saving money is not easy. The more complex global economies become the more expenses individuals have. This time it may be a loan, house mortgage, children’s tuition fees, car broke down, there are myriads of reasons to not be able to save money, however, there still is a way. In the end, it all comes down to saving habits. It is always possible to save something. Whether it is going to be ordering water instead of a juice or walking home instead of taking the bus. An important fact is that even if you put away $3 every day at the end of the year you’ll end up saving $1095, which may be a whole month salary for some.
Coronavirus has caused a global pandemic all around the globe. Due to this, a lot of people have found themselves without a job. Those who had been saving money fare much better than those who had not. These are some of the tips on how to save money so that next time you are ready for whatever is to come. In the end, saving money is associated with buying something new and better but in reality it is a safety net for situations like this where strange and interesting times bring instability in our lives.
Investing vs Saving Money
There is a big difference between investing and saving money. Investment should not be done with the money you require in your daily life due to the simple fact that a small miscalculation may cause you to lose your investment. However, a lot of people are picking it up as a “side hustle.” What this means that they put aside the “X” amount of money and then start investing with it. Taking the extra into their savings and continuing to trade with the same amount of money. The problem is visible right at the start of this paragraph though – you can’t invest unless you have some kind of capital. Fortunately, there are ways to start trading with relatively less. First of all, Forex currency pairs are a good way to start, since they cost relatively low amounts and therefore do not require huge investments. Another factor are brokerages which offer Forex deposit bonus for starters, which gives the ability to start with more than you would have in a normal case scenario. However, this is not saving money, this is still a risky investment which may give you your bang for the buck – or not. How you handle this will have very big implications for your financial success, stress level, wealth, and etc.
Saving money is a totally different concept. It is a process of stashing cash in an extremely safe environment, which can be saving accounts, or securities that can be accessed or sold at any given time.
Saving Few Dollars at a Time
Gettings started with saving means knowing the value of money. Today’s $1 costs more than tomorrow’s. Spending small amounts of money here and there, thinking that you are not going to miss it, is how we end up barely making it through the month. As it was already mentioned, small day to day savings like walking home instead of a bus, drinking water instead of coffee or soda, eating what you have at home instead of ordering something, will accumulate enough money in the long term to give you a considerable amount of saving.
The longer your money has to grow, the better it is going to be for you.
Paying yourself is an old and tested technique, which means that after every salary instead of paying other bills first you start by transferring some amount of money into your savings account. Because you transfer this money first it is less likely to miss the amount. You do not need to save hundreds of dollars each time. Transferring as much as $50 is going to be enough.
How Much Money Do You Save?
There is a big misconception going around that saving more money is good but less is bad. While from one standpoint this may seem true in reality – saving any amount of money is good. Just because you cannot save “enough” doesn’t mean that you should not save at all. Every bit counts. The amount of money required to have that emergency safety net or to use the golden opportunity to buy certain stocks when the market crashes differ from person to person. Having something is always better than nothing.
Negotiating is also a very good start. If you don’t ask for a better deal, you won’t get one. You cannot negotiate everywhere, however, when it comes to private sales there’s always a room to haggle. Any extra money you conserve during these negotiations can go to your savings account as a reward for yourself.
Cancel Extra Subscriptions
Subscriptions are one of the biggest money leaks of the 21st century. If you are not using a service – stop paying for it. I know I’ve been stuck in this loop where I used to pay for amazon prime every year despite ordering something every 2-3 months. I’ve also noticed that I have not been using Netflix much, however, I still kept the subscription for some reason. Here’s a spoon full of truth – you can start those subscription services at any point and time. There’s no reason to keep them “banked up” for when you’ll be using them. Instead, this money can go to your savings account.
There are many ways to save money. It all depends on how we look at every situation. Whether it is just changing the small habits, assessing the situation more in detail, or just canceling extra subscriptions and transferring that money to your savings account – every bit helps. Going by the motto that today’s $1 is worth more than tomorrow’s is a way to go.
In time all of this will open up a way to invest money into something more income-oriented like trading for example, which in time, will increase your net worth and your quality of life in general.