By and large, saving money is widely considered to be a way better option than spending if one wants to have a viable and financially secure life. While many, if not most of us, are certainly well aware of the adage “a penny saved is a penny earned”, we seldom follow it. This very unfortunately leads to our own detriment.
Yes, we do make sporadic attempts at saving our incomes and salaries and are also able to do so with considerable aplomb as well. However, these efforts go to waste when we splurge over unnecessary things. Before we know it, it’s back to ground zero for us.
This holds even truer if we have managed to come out of a really bad debt trap. Once our financial debts have been adequately repaid, we will make a solemn resolution to never ever go down that particular path again. When we fall far short of our original goal and end up going steadily down the same slippery slope, it feels like déjà vu. After all, not having debt essentially means that we are free. That is, free to incur even more financial debts! This ‘freedom’ allow us the leeway of going off on yet another spending binge.
Think of it in much the same terms as eating a really healthy diet. You will continue gamely on, till you have managed to achieve your desired weight. In pursuit of this goal, you maintain a controlled diet with determination. However, after attaining the objective, many of us lose focus and ‘celebrate’ by binge eating till we have ballooned back to where we started. In fact, we now weigh more than ever before. We can apply the same principle to debts as well.
Here are a couple of tips to help make sure that you are also able to actually save your funds, rather than being in debt.
o If you have debt, make paying them off your first priority
Yes, paying debts is a critical part of any financial cycle. Owing people money and having them pestering you to give them their dues is not really a nice experience. If you have savings, then they should be used to get rid of the debt once and for all. This will do your finances and your self-esteem some good.
o Always try and save something for a rainy day
Always try and save at least 10 percent of your total monthly earnings. These savings would come handy should there be any emergency that requires funds. Having a financial cushion, you will be able to take care of such scenarios with ease.
Yes, it is certainly not easy to curb one’s expenses and to just simply live on only a portion of one’s earnings, month in and month out. Nevertheless, in the long run, this is the best way to have relative stability in one’s finances and subsequently, in one’s life.