week, we recommended that you take a look at your day to day spending habits,
determine what you will do with the extra money and do some research on apps
that can help you track your spending.
This week we focus on another important aspect of
managing your money responsibly – saving. When you
save, you put aside money for future use. Saving money can give you peace of
mind, knowing that you have access to money when you need it. Saving money also
sets you up for a successful future, a future where you can accomplish your
goals, such as pursuing higher education, buying a home, buying a car and
Unfortunately, many people do not save. Some
people genuinely believe that they cannot afford to save, while others
procrastinate, putting off saving until later on. Some even find themselves
spending money that they intended to save on wants, not needs. Saving money
proves to be difficult for many.
However, saving money should be a priority. Everyone
will not be able to put the same amount of money towards savings but, in taking
a hard look at your spending habits (as we did last week), you can find that by
cutting back, there is money to save, even if it is a little. And if you put
aside that money towards your savings consistently, you will find that it adds
This week, take a look at your saving habits. Are
you saving diligently towards your financial goals, or are you finding it
difficult to save? Does the thought of saving make you sad because you find it
difficult? Do you wish that saving money could become easy?
Put it on Automatic
One of the best and easiest ways to guarantee that
you save is to have money deducted automatically from your salary and sent to
an account that is not easily accessible. When you set up direct deposit
to your savings account, you are making saving a priority and not an
afterthought. You are making provisions to pay yourself first.
You can ask your employer to split your salary; a
percentage can be automatically deposited in your checking account or the one
from which you pay your bills and another percentage can be deposited in an interest-bearing
savings account. You can also set up automatic transfers
from your checking to your savings account.
It’s best if you do not have an ATM card access to
your savings account so you’ll be less tempted to make impulsive
- it happens without you having to think about it
- it reduces the temptation to spend impulsively
- it enables you to reach your goals
- it also saves time - no standing in line
So, go ahead – put cash to your goals and
automate! Visualise your goals and automate! Make saving easy – put it on
Your prescription for Week 5
Talk with your
banker about setting up an automatic saving plan.
Talk with your
employer about setting up direct deposits to your savings account.
It's not too late to commit to a saving challenge. We have created four options for your to choose from. Choose the challenge that matches your saving goal, divide that total figure by 12 and put it on automatic. To view the four options, click here.
Next week we will review your debts