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Steps to Developing a Savings Culture



I really think the best way to save money is to invest it because that way the money will kept busy and working instead of idle. However, some people have asked how they can conventionally save money for future purposes and unforeseen contingencies, this is the reason for this post. Saving money is the art of setting aside some amount ... Continue Reading

I really think the best way to save money is to invest it because that way the money will kept busy and working instead of idle. However, some people have asked how they can conventionally save money for future purposes and unforeseen contingencies, this is the reason for this post.
Saving money is the art of setting aside some amount of money for future use. The main rea­son why so many peo­ple don’t always have enough money to do what they want or need is because they don’t have a good sav­ings habit. You will learn how you can start sav­ing money.

Step 1: Estab­lish what you want.

It is very impor­tant that you deter­mine what you want to do with money and the time when you would want to use it. Doing this will help you determine the amount you should set aside and over what period of time, for instance, if you desire to save N120,000 within six months, you should be sav­ing about N20,000 every month. This amount can also be bro­ken down into weeks or days depend­ing on your conve­nience. What mat­ters most is that you have a time limit for which to achieve your goal.

Step 2: Draw out a Plan.

Hav­ing estab­lished what you want to do with the money you intend to save and over a period of time, your next task will be to come up with a plan of how you intend to go about the sav­ing. Your plan should entail where to save the money, do you need inter­ests, how often you should save and so on. Plan­ning will help you reach your goal much eas­ier and it will take care of any unfore­seen con­tin­gency on the way.

Step 3: Be Self-dis­ci­plined.

One of the major rea­son why lots of peo­ple fail to develop the habit of sav­ing money is because, they lack the dis­ci­pline required to effec­tive pull through with the plan of sav­ing. Dis­ci­pline helps you to pay atten­tion and stay com­mit­ted to your plan. Once you have a plan in place to save some money over a period of time, you need discipline to see you through it. Some dis­trac­tions may come up along the way, but dis­ci­pline will enable you pull through.

Step 4: Mak­e Sac­ri­fices and Delay Gratification.

Sav­ing demands that you forgo some reg­u­lar spend­ing rou­tine, the truth is that once you have made up your mind to start sav­ing some money, you will have to make some sac­ri­fices in order to pro­vide for your sav­ings. By sac­ri­fic­ing some leisure, it means you are mak­ing some money avail­able to save. In this case, you will have to differen­ti­ate between your needs and wants. One of the best ways to save money is to avoid spend­ing on things you don’t need. Besides, when you sac­ri­fice, you should also have it at the back of your mind that it is for a tem­po­ral basis. That is why it is impor­tant that you have a time limit for your saving.

Step 5: Carry your fam­ily mem­ber along.

In the course of sav­ing money there are so many things that will change with you, espe­cially if you have a fam­ily or depen­dent. In this case, you should endeav­our to carry your fam­ily and any other per­son who depends on you financially, along. You should be able to com­mu­ni­cate your goal to them; I am sure if you are con­vinc­ing enough, they will rea­son with you. Sav­ing money is the most use­ful way to become wealthy in life. That is why you see peo­ple who develop the habit of sav­ing money are able to sur­vive in today’s economy.

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