How to start saving from your income
Sep 3, 2018 by Ohood Awayes
once said, "It's not your salary that makes you rich, it's your spending
There’s some truth in this saying. One doesn’t necessarily have to
earn a high salary in order for them to be able to save part of it on a regular
basis. Therefore, before we start with the some tips and hacks on how to go
about saving money, we would like to bring to your attention the fact that
saving money is not an easy process, but one that requires resistance and
self-control against the spending temptations we face daily!
So what is the most functional saving method?
You have to fully identify the spending method you currently
follow so that you can build functional saving strategy for later. Let’s
suppose you decided to embark on it once you receive your next salary. You can
start ahead by recording your current daily spending for a month or however
long you’d feel is good enough. In case you don’t wish to wait this long to
start saving, you can synchronize this step with the following ones.Second:
Identify your sources of income. With the rise of
online freelance work, it’s become only natural to have a sidekick job.
Therefore, you should determine and pool all your income sources so that you
have your total monthly balance before you begin with your saving plan.
Dividing the income. In preparation for the final
saving plan, you should know your spending in its entirety. This means you should
determine what your fixed costs are – from rental to internet and utility bills
and your monthly installment – that have to be settled on a regular basis,
whether per month, week or annum.Fourth:
Set your priorities. After you have divided your
income, classify your expenses in order of priority. There are basic expenditures,
followed by necessary ones but which you can do without, after which comes
secondary expenditures and finally recreational spending.
Build a new spending strategy. This should differ
from one person to the other; however, one common function that should be
decided is the percentage of the salary/income preferred to be saved and how
willing a person is to waive spending this percent of their income regularly!
By deducting the basic expenditures, you will have the remaining of your income
to either save in full or determine a consistent part of it to be saved. Once
this is set and to test its validity, you can do a trial for a couple of months
where you save this amount and consider it untouchable.
So you started saving, what do you do now with the saved money?
This is your decision to make. Some people prefer to deposit
the saved money in a safe lock in their house. Other find investing in this
money is more profitable. Opening a saving account is considered the ideal
option as you might receive an interest from the bank on a regular basis or you can enter a draw for a chance to win periodic prizes. To
learn about this option and go about it in Jordan, click here.
Saving money is a habit that takes time to develop and get
used to. Thus, it doesn’t happen overnight, plan smart and you will get a