You can get investment capital by either taking a loan or saving. Most people today prefer taking loans because it is faster and easier. Saving consistently takes a lot of time, effort, and sacrifice. Although this is usually the case with almost all savers, saving doesn’t have to be a daunting task. There are some secrets you can consider to make saving easier/more fruitful.
1. The magic is in the deals:
Saving is a seemingly slow process when it comes to accumulating money since we never seem to have enough money to save. It is possible to change this by shopping for deals. It would be easier accumulating a lot of money in a short time through saving if you saved a higher percentage of your income so, how do you do it? Well, start by cutting on your expenses by shopping for deals. Many people fail to realise the fact that most expenses aren’t fixed. It is always possible to spend less on food every month if you buy food in bulk. You can also save money on your house rent by moving to a cheaper house. You can also save on transport costs by taking the bus or train instead of your car. Saving isn’t just about putting aside a portion of your income every month. To make significant progress, you need to shop for deals.
You also need to eliminate complacency to get ahead as a saver, and one of the best ways of doing this is automating the saving process. You should have a standing order on your account to automatically deduct your savings when you receive your salary. Most people aren’t disciplined enough to accumulate savings in their current accounts. To avoid being tempted to spend the money, save automatically before you start spending.
3. Go against the spending wave:
You can get a good deal for a vacation by comparing prices. However, you are better off going for vacation when everyone else is at work. This same principle applies to almost every spending wave. Avoid ”following the crowd”. Participating in spending trends can hurt your saving potential immensely. Even if what you are spending on appears to be discounted, you can always get a better deal when everyone else gets bored with the spending trend. You should spend when everyone else seems broke to enjoy huge savings. For instance, February would be a great time to go for vacation, instead of December. Summer would also be a great time to buy a heating system.
4. Pay cash:
In this era of credit cards and online banking, people hardly pay for anything using cash. Although it is safer and more convenient, you end up spending a lot in fees. If you consider the number of times you run your card in a month, the fees can easily translate to more than a thousand pounds every year. Buying things using loans is also expensive because you pay interest plus fees. Furthermore, businesses extend discounts to cash buyers. Most successful savers don’t buy anything unless they can pay for it in cash.
5. Don’t over save:
Saving is usually unbearable to some people because it is overdone. All successful savers know this. If you want to save consistently for years, you shouldn’t over save at the expense of necessities. You should focus on developing a sustainable saving culture instead of one that leaves you feeling miserable. Shop for deals, go against the spending wave, pay cash and automate your saving process, however, don’t overdo it. Focus on leading a comfortable life as opposed to over saving or leaving beyond your means.
On its own, won’t get you far: Most people know it’s good to save. However, you won’t get far if you just focus on saving. You should save to invest as opposed to saving to spend. The goal of saving should be accumulating enough money to start an income generating venture. You can use savings for emergency expenses when you don’t want to take out short term loans like payday loans, however, focus on making your savings work for you in the long-term. Get financial education to discover the best ways of using your savings.