Yes, it IS difficult to save. Having new computers, cellphones, cars, and clothes may make you happy but your satisfaction diminishes over time. But as your savings grow over the years, your satisfaction with it will keep growing as well. Here are a few tips I’d like to share with you.
1. Let savings grow as income grows
Don’t keep it a steady amount but a percentage of your income—10 to 20% of what you earn. This is doable even if your income is irregular. Whatever income stream you use, abide by this rule. Set aside the right amount according to what you earn.
2. Out of sight, out of mind
The closer your money is to your wallet, the sooner you will spend it. If the bulk of your savings is in the ATM, you don’t have to wonder why your account reaches zero whenever you’re hungry or feeling the need for new clothes. Keep your emergency savings in a time deposit or a fund that isn’t easy to withdraw from.
3. Automate your savings
One of the best ways to ensure savings is to take willpower out of the equation—by using a system where money is automatically debited from your account and placed in savings. Banks and some financial institutions offer such a service.
Savings are a wonderful thing to have. There’s nothing like the feeling of being in control of your finances. Just stick to your rules and you’ll do well.