If you are trying hard to save money, here are the reasons to save extra money every day, every week or every month to keep yourself well motivated. The most important in saving money is “discipline”. Are you disciplined enough to set-aside even a single cent every day? If not, here are the right strategies for you or find a way on how to train yourself to save money and invest.
1. Find a mentor – a mentor who will closely track your progress in saving money. A mentor can be a friend or a close relative.
2. Open a Savings Bank Account with No ATM card – you have to save money in the bank not anywhere in every corner of your house. The fact that if you save money in a jar, you can just open a jar and get it. What’s the sense of saving money if you will get it immediately after you have put it? If you save in a bank account, you have to make an extra effort to go to the bank and deposit money to your savings account.
3. Find an automatic investment. Wherein, a monthly auto debit from your savings account are done and the money debited will invest in stocks or mutual funds. Some banks are offering that investment opportunity. In the bank, there is the “trust account” investment. Go to any of your chosen bank and ask for it.
Tip: If you will just save your money in the bank, they will just earn small interest. That’s why it is recommended to invest your money and make them grow overtime. Invest for 20 years and above.
Do not waste the money you’ve earned. Besides, they are hard-earned. So, there’s no reason for you to lose your money easily. There are lots of great reasons for you to save not just because money is hard to earn.
Reasons to Save Extra Money for Future
If you are not yet motivated, here are the reasons to save money. If you have no reasons or purpose why you are doing a particular thing, in the end, you will get bored or you will just find it a time-wasted. Why? It is simply because you don’t know the benefits why you are doing it.
1. For Your Dream (material possessions). Example, if you want a brand new card after 10 years, then start saving today for that car. So that, when the time comes, you don’t need to pay a car in an installment basis.
2. For Your Dream Home. If you want to build your dream house after 5 years, start saving money today. Calculate the total budget or cost in building your dream house. Example, you need $25,000 for a simple house. Then, start saving hundreds of dollars every month until you saved a total of $25,000.
3. For Education. If you have kids, prepare the college funds for your kids. Start saving money today, so that, when the time comes when your children will enter college, you have enough money to pay for a tuition fees until they will graduated.
4. Save Money for Retirement. The best time time to save money for retirement is today. If you plan to retire at age 65, you still have many years to save enough money to retire rich and comfortable. If you have no plan to retire comfortably and you’re plan is to work forever, you don’t need this tips. You have to save enough money so that during your retirement, the money you have saved will work for you instead you keep on working for money.
Final Thought: Ask a certified financial planner when making a financial goal. Ask him/her where are the best place to invest your hard-earned money. Kindly also ask a certified financial planner about risk profiling and know the different things to prepare before investing.