How to start saving? How if we don’t have any fund to be saved?
Everybody dreams to live in welfare. Definitely we need hard and smart work to achieve the condition. But, do you know that we can earn another income by letting our money or capital that we have gathered work and produce another income for us?
Yes, we can get another income by saving. For young couple “saving” sounds a hard thing to do. Saving means postponing the happiness for a moment in this period to get bigger result in the future. The question is what source of fund for these savings? Our “take home” money seems do not enough to buy our need. Our monthly earning often could only be used for monthly requirement, even sometimes it is not enough. Moreover if we still have to pay instalment, such as car and house instalments. Besides, credit card motivates us to shop more and more. Not all debt is bad, but debt without planning could bring bad impact for family’s finance.
It seems there is no other way for employee to save except they insist to spare some part of their salary to be saved. And because they don’t have enough source to fulfil their desire, their should also invest while saving. Consider buying stock or a property. You may get dividend by the end of a year or gain house rental money as income.
Inflation and tax are two external factors that can reduce our income. We cannot control external factors, but we can manage the internal factor by starting saving habit. In order to start saving, we have to manage our shopping habit. We should not buy the thing that we don’t need at this moment.
If you have started it, you’re on the right track. This moment is the best time to start saving periodically. Postpone saving will reduce our income in the future. So start now by managing our overspending money.
These are the ways we can do to overcome the overspending money:
- Don’t buy something when you fell angry or disappointed.
- Don’t go to mall or department store when you don’t need something to buy.
- Count things you have bought but you’ve never used them. Don’t buy such things again.
- Buy only the thing you need.
- Stop using credit card when you don’t have any budget to pay the issuing bank.
As you reduce your overspending money, reward yourself with (for beginning) 10% of your income to be saved/invest. Save 10% of your regular income monthly. 10% of your income will not change your lifestyle drastically. Then learn or ask somebody’s help to invest your money. By building this habit of saving, you may achieved the welfare life you are craving.
Published in: Personal Finance