Gaining Money Is An Action, Maintaining Money Is A Behaviour

• Do you think short or long-term about your savings plan?
• Do you ever save for a rainy day?
• Do you have money kept away for unexpected expenses?
• Do you have an emergency fund?
• Do you have a budget in place?

“Don’t tell me where your priorities are. Show me where you spend your money and I’ll tell you what they are.”

James W. Frick

The discussion of money is definitely a 50/50 conversation to have since everyone has their personal financial priorities however the subject of saving money rarely changes since it is an essential element to life. You see, many people do accept the notion that saving money is a useful habit to practice, however, their beliefs and financial behaviours become two very separate sentiments that sadly do not align. Fact is, people usually have the intention of saving their money although when it comes down to committing they just can’t resist life’s temptations. Now of course, sometimes life simply gets in the way of our finances, what was once considered important spending becomes the less prioritised expense but for the most part, an effort to save money is done in vain as the next temptation keeps occurring. There is no doubt that getting into a routine of saving money is by any means easy to implement, if anything this habit requires a strict, obedient mindset that motivates significant financial change in decision making and lifestyle. However, to achieve great financial management along with long-term financial freedom then creating a realistic saving strategy is an absolute must, a routine that is consistent and most definitely doable. In fact, this is the very first action toward helping you gain control over your finances. The objective here is all about keeping more money in your pocket rather than spending money that doesn’t necessarily fund your lifestyle.

How to launch you savings plan:

First of all, If you desire to gain sensible control over your finances and aim to begin building towards financial freedom, then the first step is to get your financial life in order by gaining clarity about your current financial position. You need to undergo a financial analysis process is to identify what’s working, what’s not working and where you might be overextending yourself. So, ask yourself this:

• What is your current earning weekly, monthly, quarterly and annually?
• How many expenses do you have?
• What are these expenses costing you weekly, monthly, quarterly and annually?
• What debts do you owe?
• How much money you have saved? Is this enough to meet your financial goals?

It’s important to get an overview of your spending habits, recording your spending provides you with a visual account that can actually assist you with; strategic planning, organising, directing, and control over your financial efforts. Fortunately, online banking provides access to our monthly spendings so there are indeed options to refer to. Take note, it’s only when you take the time to assess how you’re spending your money that you receive a sense of where potential savings can be made. As a result, you prompt a far better position to prioritise accordingly and make more optimal financial decisions moving forward.

2. Step two involves setting achievable savings goals and commit to transferring a certain amount of money each week or month into a high interest-bearing account such as Marcus by Goldman Sachs. But, It is definitely worth completing your own research to find the best-suited savings account for you. Your savings account represents your future investments and even emergency fund since this money can give you some leverage when unexpected expenses arise. By breaking down the importance of budgeting and establishing an emergency fund you are addressing the two key areas which will help you manage your finances far more effectively.

Now, when it comes to our lifestyles, there will, of course, be sacrifices that need to be made especially if you aim to save money. Essentially you will inevitably need to make some sacrifices that may not want too but need too because, in the long-run, they will help you to save money and potentially get you out of financial debt. Often at times making the smallest of choices can help you to save a lot of money over the course of a year.

Mindset over matter:

In all fairness, everyone has the ability to begin saving money and building their financial future, it’s very simple and can be achieved in gradual ways. All it takes is awareness, obedience and the drive to make active changes that will progressively fund more money back into your pocket each week. The key to learning how to manage your money more effectively begins with developing solid habits that will help you make more optimal financial decisions. Ultimately, the choice is yours to make. The financial decisions you make today to save money may not seem like they matter right now, but over the course of days, weeks, months and years, they can be the biggest difference between living in debt or with the satisfaction of financial freedom.

Yours Truly Sasi