Saving Money will guarantee a bright future
We all have the intention to save money but how many of us are really doing it? Research has shown that very few people save. A recent study by the Federal Reserve revealed some shocking statistics; half of American adults have issues in covering a $400 emergency without having to take out a short term loan or borrowing from friends or selling some of their assets. This is despite the fact that most of the respondents were earning four times that amount. So what could be wrong? It’s all about savings. We are always arguing that we earn too little for us to save, we give the excuse of financing a car loan or a mortgage, young children and so many other reasons which we claim take most of our earnings. One thing to know is that you will always have something taking a substantial share of your earnings, even when you finish repaying the loan and the children are grown and no longer dependent on you, other expenses will come up. Upon realizing this, you need to make plans on how you will start saving money and move away from the mentality of being broke the first week after payday or cannot afford to cover a $400 emergency without taking out a loan or selling an asset.
It should all start with setting your objectives; you have to start thinking about your future. There will be a time when you won’t be employed, you may either lose your job or retire. I’m not trying to pessimistic, but this is sure to happen at some point and retirement will definitely come, so being prepared will help in making life after employment easier. You need to set aside some money which can be used for your needs and also allow you to invest so that by the time you retire or decide to leave your current employment, there is something for you. Without saving money, investment is going to be difficult. To help save, you need to come up with a monthly budget.
Make a zero budget, ensuring that all that you earn is accounted for, and make saving a priority. You need to set aside savings rest and then distribute the rest among the most important needs. Savings should not be what remains after spending, it should be an amount determined before allocating other items. If you do this each month, by the end of the year you will have a substantial amount to allow you start a business and boost your earnings.