Saving is one of the most challenging ordeals for youths today. They can’t be blamed either given all the bills that need to be paid and all the miscellaneous expenses that need to be run as well. A lot of people when they get paid go straight into the motion of paying bills and having fun and at the end of the day have little to nothing left to save. It doesn’t make it any better that most of them are already up to their necks in debts before payday arrives.
How do we beat this challenge? The answer is simple enough but hard to carry out. It requires a lot of courage, discipline and determination. This is one of the oldest rules for saving but has proven to be difficult. Let’s find out what we can about it.
Pay yourself first
This system is mostly for small business owners but can also be applied to salary owners. It means exactly what the name implies that you pay yourself before making any other expenses. It really is hard to do but with determination you’ll be fine.
How much you should pay yourself?
First things first; you need to determine how much you should set aside for savings, in order words, how much you should pay yourself. This amount should be reasonable enough that you still have enough left to run your daily life and be able to meet with your savings expectations or goals within a set time (monthly, yearly or however).
Consistency is the key to this game.
You can’t save this month and next month decide to do something else with that money. Like I already pointed out, it’s definitely going to be difficult but you need to apply discipline. Make your wants less and prioritize your needs. Consistently pay yourself thee stipulated amount without missing a beat.
Don’t lower your standards for any reason
Instead of reducing the amount you save over time, increase it. Don’t lower your standards for any reason. Keep in mind what your goals are and you’ll be encouraged and motivated to do more. Also learn to take records from time to time. Look back at what you’ve been able to save so far and give yourself a pat on the back.
The bottom line is to ensure that you don’t spend first then save what’s left over. Rather save first then spend what’s left.