Simple Mistakes People Make When Saving Money
Developing a savings culture is not as easy as many people think. It is a complicated process that often needs…
Developing a savings culture is not as easy as many people think. It is a complicated process that often needs the will to go on no matter what happens. Savings is a habit, something that one repeatedly does that eventually becomes part of them and hard to let go of.
There are a few mistakes that people make on their path to saving:
Saving “too much”
They say save until it hurts. But that is a misconception. Saving shouldn’t be something that hurts or makes you uncomfortable. It should be something that you will always look forward to and enjoy doing. Do not save everything you have to the point of feeling the pain.
The secrete to a healthy saving is that put aside what you can manage to and still remain with something to push you along and connect you to the next earning without making you go for whatever you have saved. It is recommended to save at least 10 percent of your monthly income.
Some people think that not spending any money at all is what will fulfill their saving dream. No. The truth is, denying yourself the basic needs in the name of spending is living in denial and will only make your savings journey difficult.
Do not deny yourself the things that you need the most in the name of saving. There is another rule that you should spend whatever is left after saving. I object. Have a friendly percentage of whatever you should save from your earnings.
Not having a plan
Saving is a journey. You always need a plan to embark on a journey. Whoever lacks a plan is only planning to fail. Saving is not someone you can just start out of the blues. Have a plan. Write down the things that you need; why do you want to save? What do you want to save? Where do you want to save? And how do you want to save?