Savings

Saving is the practice of putting aside part of your current earnings for future use. During financial literacy training, we prefer to use very simple language which everyone can understand. That’s why our definitions are simple and to the point. It is also important to talk about Deciding Where to save considering factors like Safety, Access to your savings

Saving is most simple and safe way to create your financial freedom. Saving is essential to building your long-term wealth, and it is important to save early in life and often. Regardless of your age, you should save a percentage every time you receive money. The everyday decisions you make about money can have a lifelong impact. Saving allows you the freedom and flexibility to fulfil your goals and helps you develop good personal finance habits.

Saving money, or the “saving habit”—as American author Napoleon Hill put it many years ago—is the foundation of all financial success.

 Having money saved is what provides the means for you to take advantage of situations whether it’s going back to school, starting a new business, or buying shares of stock when the market crashes.

 Opening a bank account shall be the first step towards successful cooperation. Having opened an account with bank, you will be able to safely keep your funds and conveniently manage your daily financial matters. Opening a bank account is simple – you have to arrive at any customer service outlet of bank and enter into a bank account agreement.

How Much Money You Should Be Saving

Everyone knows that saving money should be a top priority, but how many people know the exact amount of money they should be saving? Most individuals mistakenly believe that saving more money is better, and saving less money is bad. 

While that’s true in a general sense, the amount of money you need to save depends on your needs, lifestyle preferences, and income. The amount you need to save and have available in the event of an emergency or golden opportunity could be very different from your friends, family, and neighbors. The general rule of thumb is to have three to six months of living expenses saved in an easily accessible account.

The Key to Saving Money Is To Pay Yourself First

The single best way to begin saving money is to use a technique called “pay yourself first.” This technique has been proven time and again to influence people to change their behavior.

Simply put, it’s establishing the discipline to put a certain amount of every paycheck into savings for your future before you pay any other bills. Most individuals choose a specific percentage to take out each month, like 10% for example.

Ways to make Saving Money Easier

Sometimes, saving money can be difficult. Life often throws us curve balls, like unexpected emergencies or injuries that tend to impede our savings schedule and routine.

If you are struggling along the path to financial freedom there are ways to make saving and investing easier.

Try making a game out of finding ways to spend $100 less each month. For example, you can walk home rather than take the bus, or order water when out for a meal instead of tea or coffee. Reward yourself, and set goals for what you’ll do when you reach certain savings levels.

Savings is one thing and one thing only: Savings is a Commitment.

Pure and simple.  Most households can afford to save money each month, so why don’t they? It is not because of the amount. It’s because of the commitment.

You prioritize what you commit to in life. Most people commit to anything they see as immediately beneficial to them or to those they love. Even though you do not think about it, you are committed to breathing. You do not count your breaths per minute. You do not measure the volume of oxygen you inhale. You are committed to breathing and you just do it. Whatever it takes. Saving is the same way. If you are committed to saving, you will just do it. You will care less about how much you save with each paycheck. You will worry less about how much you have in your accounts. You will, instead, automatically save something every time you receive income.