The study of Economics teaches us that resources are scarce, and human wants are insatiable. For this reason, it is important to prioritize our expenses, and also ensure that we save for future needs. Savings however is a difficult task for many people. Man's basic needs like food, clothing, shelter, health, and education must however be adequately catered for.
For many low income earners, Saving seems to be a very difficult task. Before some needs are attended to, others would have emerged, to wipe off the remainder of your income. The benefits of savings however cannot be overemphasized. Saving is an investment for a future expense, or an unforseen circumstance. Here are some tips on how to start consistent saving.
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Set A Goal
Setting a savings goal relates to saving for a defined purpose. This serves as the drive in you to achieve the amount you want to save. A well drafted savings goal can be a source of motivation to you. It helps you to regularly measure your level of conformity with your plan. For example, as a fresh graduate who has just been employed, you may set a savings target for yourself to help set up your own company after a period of time working with that establishment.
Work on Your Spending Habit
Saving is a function of what percentage of your income you spend on basic needs and liabilities, and how much value you place on your wants. In order to develop a robust saving habit, you must work on your spending habit, to give priority to the more important needs, and deny yourself of the extra gratification that you may get from less important things. You cannot eat your cake and have it. This means you cannot save when you give attention to less important things.
Drawing a scale of preference is useful for identifying those needs that can be suspended, or those that you might find cheaper means of getting. To control your spending habit, you must not be an impulsive buyer, and you must not emulate celebrities, or follow social media standards.
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Adopt A System That Compels You to Regularly Save
There is need to religiously adhere to your saving habit. There are events that happen and overwhelm your finances sometimes, making saving difficult, but if you have put measures in place to ensure regular adherence, you can be consistent with your savings.
One of the measures you may adopt to achieve this is the use of savings schemes that deduct your savings directly from your wages before payment of the wages into your account. A Cooperative / Thrift system is one of these measures. The goal is to help you save come what may. You can then get the money at the set time, and use it for its main purpose at the right time.
Get A Side Hustle
Majority of employees complain that their wages or salaries are far too low to cater for their basic needs. While this is true, especially in underdeveloped nations, it is also important to note that salary is not meant to cater for all your basic needs, but to keep you alive.
Employers also do not care about how large your family size is, so that your remuneration might reflect it. You are therefore saddled with the responsibility of getting an extra source of income. This may involve selling of goods, or service provision, which do not negatively affect the discharge of your duty where you are employed.
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No matter how low or high your income is, it is important to adopt a savings habit that suites your earnings, your basic needs, and your goals.
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