Operations & Finance
April 9, 2024
10 mins
Introduction: Starting your financial journey could be quite challenging due to several factors such as the size of your income, the frequency of emergencies, lack of personal finance knowledge, and so on. However, to build wealth sustainably, it is pertinent for you to have a clear financial plan and you cannot build a financial plan without having a good saving habit. A good saving habit like other good habits needs to be rigorously practiced and cultivated. In this post, we share a few tips on how you can level up your saving habits as you look to achieve your financial goals.
Save with a goal in mind
Saving towards a goal or project is the easiest way to improve your saving habit. Ensure that you set smart and achievable goals. An example would be saving for rent, education, wedding, ‘japa’, etc. Saving with a goal gives you purpose, and having a purpose on your saving journey helps you remain faithful and committed. It is also possible to have multiple goals. This is not wrong but it is generally advised that save towards your goals one at a time.
Save before you spend
A lot of people see their savings as the amount that should be set aside after their monthly expenses but this is a wrong approach and should be discouraged because it is easy to overspend and ignore your budget. Hence, deducting your savings from your income before you spend is advised and more efficient. SaveChecks by myStash helps you achieve. With SaveChecks, you can save a percent of your income at the point of payroll. Read more here…
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Save a convenient amount.
Irrespective of your saving goal(s), it is advisable to save an amount that you are comfortable with. This is to ensure that you remain consistent and don’t begin a vicious cycle of constantly dipping into your savings.
Build discipline by sticking to your budget and living below your means
Living below your means and within your budget is one of the greatest personal finance skills you can ever dream of possessing. Fortunately, it is a learnable skill. It starts with you taking quality time to examine your expenses and spending habits and creating a proper budget.
Another thing to note when building discipline is to avoid lifestyle inflation. This is a bit difficult to manage because improved income usually precedes increased responsibilities and preferences. However, it remains pertinent to keep this to the barest minimum to enable you to achieve your goals
Principle of delayed gratification
It is important that on the journey towards financial independence, you’re fully able to distinguish your wants from your needs. The fact that you spend your income based on a budget doesn’t mean that you don’t get to live life, travel, buy luxurious things, and go on fun and expensive dates; rather it means that all these are budgeted and planned for and not based on impulse.
Consistency trumps volume
The consistency and volume of your savings are both of immense importance. However, at the start of your journey, we advise that you start with a comfortable amount and build your saving consistency. As your
saving habit improves and your income increases, the volume of your savings will also increase.
Automate your savings.
Another important hack is to automate your savings.
8.Track your progress
Track your savings as frequently as possible to enable you to measure progress and give yourself a pat on the back when you notice improvements.
Happy stashing…
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