Saving money is important for the financial security of an individual. Start young and start today. Savings fulfills all your needs and wants. Start saving willingly as expenditures are increasing day by day. Know your financial situation and start working on your financial structure.
First steps to start saving your money
Start meager
“A journey of a thousand miles must begin with a single step” Lao Tzu.
Great things begin with small steps. It is more important to save money on a daily/weekly/monthly basis. It’s always that little things make big things happen. Therefore, start with a small amount.
Start immediately
Time is money. The sooner you start the better it would be. If you start early you will reach the saving goals faster. This will have immediate results and fetch you extra benefits as time passes.
Check: Top 5 savings accounts in UAE
List your income and expenses
List down the amount you earn on monthly be it pay cheques, rents, etc. And make one more column listing down the monthly expenses. One has to know how much money he makes as it will let him make the right choice while spending on needs and wants. This can help in understanding the unnecessary expenses and cut it down wherever it is possible.
Create a budget
Budget will help you in understanding your financial structure. Preparing a budget will enable you to know your expenses, which in turn helps you in calculating the savings and categorizing your savings for emergencies, retirement, investments, etc. Budget plays a vital role in planning your future goals.
Know and categorize your expenses
“A penny saved is a penny earned”, said some wise man. Expenses play an important role these days. You will have to spend less in order to save more. Categorizing expenses will help you in fulfilling your goals gradually and inspire you to achieve your goals. This will help a person realize when and where to cut down unnecessary expenses in order to boost your savings.
Make a habit of saving
Everyone should start a habit of saving money. As life is unpredictable, we need to teach your children the importance of savings. This will help you lead a stress-free and healthy life. If a person doesn’t cultivate this habit, then he will have to run into debt which might include huge interest. Use an automated tool to have a track of your savings.
Know: How to teach your child value of money
Emergency fund
Start allocating a little amount of money under the emergency fund. This will help you in urgency situations like medical care, job loss, etc. It will help you resolve issues and avoid debts in extremity.
Plan for a retirement account
Start saving a little amount for your retirement. It can help you retire early and lead a peaceful life. If you start saving on a regular basis, you can increase the savings amount as time passes and manage your own expenses after retiring.
Investing the saved money
Start saving so that you can invest whenever you are ready or whenever you have a sufficient amount of money. Investing can help money grow automatically. So, start saving so that you can invest in the future.
Also, check: Different investment options in Dubai
Other ways to start saving
If you clear the existing debts, you can save more for the future. Have long term and short term goals for saving. Open a savings account and start saving. Not only starting to save money is important, but to keep it going you will have to have certain goals so that you keep working to fulfill those goals. It is good if you start saving small and invest that small amount. The amount you save increases and inspires you to save more.
A small start to save money can make a huge difference in your life. One may find saving to be a parody if he/she is earning a little amount. But saving is irrespective of the income you earn. According to the financial education system, the foremost way to track one’s finances is to start saving. Most of the prominent economists believe in the concept of saving how much ever little you have.
About the author
Anala is a young and spunky guru on financial matters, who tells you like it is; everything from managing debt to managing savings accounts. While books and movies keep her brain ticking, Anala pursues swimming and dancing to keep fit. A lifelong explorer and learner, Anala believes in giving back, and volunteers with the Bright Spark Education program at the NGO Youngistaan Foundation, where she opens up children's minds to the innumerable possibilities of a happy and successful life!
