9 Steps to Effective Saving

Monday, April 3, 2017 - 13:15

One day I will buy a house just like that one… A lot of us say this statement way too often. Do we really mean it? Are we doing anything towards that goal? We make a lot of declarations in our lives yet our actions reflect the opposite of what we say. Are you saving towards your dream house? Or do you feel that it is just a pipe dream? Or that the money you get is never enough. Most likely, reaching your financial goals will require you to commit to saving.  That is one reason saving is an essential part of any money management plan.  Set money aside each month to save for your short-, mid-, and long-term goals.  If you are having trouble establishing a nest-egg, don’t despair.  Following are some simple ways to boost your savings:

  1. Pay yourself first – when you get your pay check, put some money in savings before paying bills or spending the rest
  2. Make it automatic.  Having money automatically deducted from your checking account into a savings account helps to ensure that you meet your savings’ goal.  Even better, if your employer has the capability to automatically deposit your pay check, have some of the funds directed into a savings account. Try to save 10 percent of your income
  3. Turn a hobby into income.  Many people have untapped talents.  Whether you enjoy photography, painting, knitting, or metal work, consider possible ways to earn money by doing what you love best.
  4. Downsize.  Most people have garages, basements, and attics full of items they no longer want or need.  Holding a garage sale or advertising some of your things online could result in a boost to your savings account.
  5. Use gifts wisely.  If you receive unexpected funds, do not be tempted to spend them frivolously.  Instead, put all money received from tax refunds, inheritances and gifts into an interest-bearing savings account.
  6. Keep savings of three to six months of your monthly expenses in a liquid – or easily accessible – account in case of emergency.
  7. Use the Rule of 72 to calculate how long your savings will take to double in value – divide 72 by the current interest rate to determine the number of years that it will take to double your initial savings amount
  8. Take advantage of compound interest.
  9. Set exciting, realistic financial goals that inspire success.

We are here to help you realise your dreams. At National Building Society our mandate is to promptly deliver quality housing and financial services. We have different packages that suit your capacity so you are guaranteed a comfortable transition to house ownership. You do not need to starve before you have your own place and saving is the best way to start! All you need to do is let NBS in..