If you are looking to save some money this year, you are on the right path. Nobody really knows what’s going to happen with the pandemic, so you may as well secure your future on your own. By saving more money, you can allow yourself to not worry about how you are going to live next month and stop living paycheck to paycheck. How much you can save depends on a lot of factors, but the habit and thinking about it are the most important parts.
It doesn’t matter if you decide to put away ten percent or thirty out of your paycheck, it still beats nothing or a lesser sum. The more you save, the more you have. If you want to be one of the have’s, and not have not’s, financial literacy and action are key. You can’t become financially secure if you don’t know how to manage your money. Even top-paid actors, or folks who inherit a lot, quite often go bankrupt because of their ludicrous spending. Don’t be one of these people.
It’s Not Supposed To Be Easy
Nothing in life that’s worth doing is actually easy. Working out is hard, your day job should be hard (otherwise, are you challenging yourself and earning as much as you could?), and relationships aren’t that smooth all the time, and yet all these things are important. Think of saving your money as a relationship with your bank account. You want things to be good right now, but you are also thinking about the future (at least that’s the preferred state).
Setting money aside is important. It delays your buying ability right now, but increases your capital in the future. Do you want to buy a really expensive gift? Save up for a down-payment on a mortgage? Start a business? Whatever lofty goal you set for yourself, it will require cash. And if it’s more than you can afford right now, that means you will have to earn money, and set aside to spend on your goal. Of course, you can buy that jewelry right now, but who is going to pay rent then?
It’s a common idea amongst successful people that if you want something, you will get it. But you have to put all of your energy towards that, otherwise, the chances are slim. Put your money towards improving your financial situation, not staying stagnant. By setting money aside, you can use it wisely in the future, or at least be prepared for an unexpected situation, such as an unexpected illness, car crash, or another lockdown. You don’t want to be unprepared for any of that.
Save With A Purpose
When you have a clearly defined goal, you have way more chances to reach it. Saving, not for the purpose of hoarding gold like the Scrooge, but for a meaningful goal or investment is a good way to make sure you are going to stick to the plan. If you really want your kid to go to college, you better make sure your saving is on point. Likewise, if you are looking forward to a nice retirement, and perhaps living off dividends, saving and investing as early as possible is key.
It’s true that those who work harder are usually more willing to be diligent with their money. That’s why the workaholic nation of Japan is also extremely economic. They don’t use any water they don’t need; they don’t buy impulsively, and more importantly, they delay spending their money with a passion unseen in others. Check out an article about best money-saving tips at lifetechjapan.com.
Save Your Money In A Safe Way
Now, if you are putting money away with the purpose of not spending it in the next year or years, it may be wise to protect it both physically, and in the value that it holds. If you are saving thousands of dollars, they will probably be still worth thousands of dollars in a few years, but the inflation rates can be as much as 8-15% percent. That’s why it may be smart to invest your money in a conservative fund, index, or stock you are certain is going to perform well.
There are many ways to invest your money, and the stock market usually plays out best for the long game. If you may need that money all of the sudden, a bank account with a high payout percentage is better than nothing. In case you are eager to learn some more, check out this guide by no other than Bank Of America itself.