Ideally, a young working adult should be able to comfortably save about 10% of his or her income.
The individual should then be disciplined enough to save this amount without touching or tapping into it for unnecessary and frivolous expenditure.
If this is successfully achieved then the individual would be able to venture into other types of commitments on a long term basis without the probability of defaulting at the first sign of a challenge or trouble.
Curbing lifestyles and keeping within a planned budget will also allow the individual to comfortably create a savings plan that will be useful in times of need.
These needs can be when a job is lost, when medical emergencies arise, when a good deal comes along, when opportunity strikes and any other positive venture that might require instant access to considerable funds.
Thus learning to develop the savings attitude will eventually prove to be beneficial both in the present and for future opportunities.
Drawing up a savings plan that can be put into practice over a yearly time frame would eventually help the individual create a very healthy savings amount.
This would then allow the individual to focus better on the needs rather than the wants of the daily requirements of existence. It would also allow the individual to learn how to spend less in order to save more.
There are several tools available to assist an individual in creating and tracking a complete savings plan. These can be monitored periodically depending on the individual’s preferences.
Reasons To Save More This Year
Learning to save as much as possible is always a good habit to form, thus there is no real need to have a reason to practice this positive attitudes than for its sheer benefits which are rather extensive.
However, if there needs to be a reason to save more the following are just some of the more prominent ones to go by:
⦁ Having a healthy emergency fund that is accumulated through diligent savings, is always beneficial. This will help the individual tap into this resource when the need arises, as compared to having to resort to taking out a loan which will only incur high interest rates, that may cause the budgeting process of the individual to be severely affected.
⦁ Creating a good long term saving plan will also allow the individual the option of making huge down payments thus eliminating the need for larger loan packages and financing help. With more savings the individual is able to bargain better as the saving will allow for cash payments to be made. This will present quite an advantage to the individual when the seller keeps transacting quickly.
⦁ Saving more will also allow the individual to have the resources available to cash in on bargains and sudden opportunities whenever and wherever they pop up. Often people allow opportunities to pass them by simply because they lack the finances to capitalize on them. Therefore learning to save more and frequently putting aside any assess cash will keep the individual from missing out when it most counts.
⦁ Making the effort to save more will also inculcate in the individual the opportunity to be very disciplined and focused, which is a trait that will help in other areas in his or her life too. The sooner this trait is cultivated in an individual the sooner it will bear positive results.
Keeping track of one’s personal financial status is something that can be practised or learnt with some tips and careful and diligent observations.
In order to have healthy financial standing the individual should take a serious view of cultivating good and wise spending habits very early on.
Keep An Eye Out
The following are some areas which some focused attention can benefit from when it comes to keeping finances in shape:
⦁ Being a weary and informed buyer is a good attitude to cultivate, as this will be pivotal in ensuring the individual does not easily get carried away or taken in by savvy sales personal making impressive sales pitches.
Know the attributes of any item intended to be bought, before actually making the physical purchase, will ensure complete satisfaction from a product that not only suits the needs but is also considered essential.
Failing to ensure these two important points before making a purchase would deem the purchase frivolous thus a waste of money.
⦁ Buying on credit is a habit that should either be broken or controlled to its maximum, as this form of making purchases does not allow the individual to be completely conscious of just how much is being spent.
Learning to make as many purchases as possible using cash has a better shock and controlling element that using credit. There is nothing more effective and eye-opening for the individual, then to see his or her cash depleting at an alarming rate, which is evident through cash transactions.
⦁ Although the means for making purchases may be available for the individual, being able to discern what is necessary and what is not is also a form of keeping finances in shape.
When there is an excess amount of money available, there is always the tendency to want to make use of it, and most times it is used for the wrong purposes. One way of avoiding this, is to find savings plans that don’t encourage easy withdrawals.
Make Financial Resolutions Real
Making resolutions is easy but making them stick is something else which requires much more than just some words and thoughts.
In the quest to make financial resolutions that eventually see some level of success there needs to be some careful planning and thought exercised beforehand.
The following are some tips to help an individual design and stick to a set of financial resolutions effectively and successfully:
⦁ Perhaps the oldest and most common recommendation would be to physically note down the goal intended to be reached, through the financial resolution exercise.
These goals should be designed to follow a very real and practical format that will create encouragement for the individual to follow it well. Seeing something is writing is somehow more effective especially if the written goal is placed in a very visible and frequented area.
⦁ Besides writing and visualizing these resolutions there should also be short term incentives included in the whole exercise to keep the individual motivated to stick to the financial resolutions made. Such rewards may include an occasional treat or a small present to note the significance of the effort extended towards keeping the financial resolution.
Celebrating such efforts periodically will ensure the individual does keeps steadfast in the quest to focus on keeping the resolution, and yet at the same time it will help to avoid making the individual feel deprived in any way.
⦁ Thinking of the goals frequently is also another practice that should be encouraged as it will help to fuel the resolution keeping mindset to continue being steadfast and disciplined. It will keep the idea of giving up at bay and any negative challenges from becoming overwhelming.
This “fuel” is usually the important factor that keeps the resolution very much alive and achievable. Dedicate some quiet time each day to focus on the resolution and tap into the inner strength available.