Importance Of Saving Money

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While saving money comes naturally to some, others may find it extremely difficult to instill it in them. I am no stranger to setting financial goals as I have often aspired to make saving money a habit. Unfortunately, the goal-setting journey isn't a smooth one for impulsive buyers like myself. Faced with bumps along the way, I did, however, manage to pick up a thing or two about setting effective financial goals. For effective financial goals, begin by listing the things you want to get done in the next 20 years. They can be goals which you want to have achieved by next year, five years later or in 20 years’ time. Do you wish to upgrade to a new home by the coast? Is there a credit card debt you need to eliminate? Consider the importance of…show more content…
Seems fairly basic and self-explanatory, but is noteworthy all the same. If a situation arises where you feel like making an impulse purchase, ask yourself this: Do I really need it in my life? If it's a yes, give yourself more time to consider. Most of the time, these purchases will not be worth blowing your budget over. But, we won’t know that at that time, will we? • Don’t keep your stash at home. Unless they are for emergencies, don’t leave your money when they can be in the bank earning interest. This goes for leaving excess cash in the checking account too. Transfer it to your savings account to take advantage of the higher interest rate. • Don’t procrastinate when saving. In this case, time really is money. If you are a chronic procrastinator like me, you probably planned to save three months ago and still have not created a savings account. Head to the bank straight away. Don’t even plan for it – you and I know very well how that ends. • Don’t put saving at the bottom of your list. You should arrange for a set amount of your pay to be transferred from your normal account to your savings account each month. This way, you can prevent external factors from affecting your savings

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