5 realistic ways to save money faster
1. Percentage rather than absolute numbers
There are some among us who do not feel that saving regularly “makes sense.” The reason is because the balance at the end of the month does not feel substantial.
That’s why we should look at percentage growth of your current balance rather than actual amount saved. Regardless of how much we earn, we can always save up according to how much we would like to set aside per month.
(Annually) A suggestion is to save around 20-50% annually of our previous year’s balance. That will mean that you can increase your net worth of around 1.2-4% per month! Pretty good incentive to save if you ask me!
2. Start with a “ridiculous” monthly saving contribution
Always start by setting a higher saving goal per month then slowly adjusting in the later months.
Most people tend to give themselves too much allowance and that conflicts with the whole idea about saving up for the future. Remember, time and tide waits for no man, thus our main goal in life should not be spend on regretting our decisions.
3. Set aside monies for *spending*
“Whats the point of working without enjoying life”
young adults in singapore
I totally agree with that statement but your willingness to spend should not go against your desire to save. Perhaps, you can set aside 5-10% of your monthly income into “necessary expense” but once fixed, stick to the plan and only purchase goods and services within your set Budget. – accumulate a few months of savings for a bigger ticket item like holiday expenditure, tech gadget, meal at an “Atas place”, etc.
4. Track your progress on a monthly basis
Tracking your expenses helps to keep yourself accountable to your plans and goals in life.
It might sound ridiculous but this is more common than general, most people struggle with having insufficient self-discipline. That is the reason why we need a system to monitor our progress.
(Suggestion) Creating a simple excel, Google sheet, or numbers (Mac OS) document will help u realise how much u are actually spending cumulatively.
5. Set an end date to achieve your goal/milestone (for a review)
This might sound like a cliche but basically a plan without a goal is pointless and hardly achievable as well. Furthermore having an end goal or milestone actually serves as an encouragement for us all as it reminds us that our sacrifice or commitment had an end date as well.
“Always have the end in mind”
My jC teacher
Bonus LOOPHOLE for saving money, use compounding interest to amass capital. Though saving actual monies might make more sense than a 1% interest bank account, it will still add up eventually! Combine both prudent spending and choosing the best saving accounts to maximise your funds and multiply your savings. More info from the previous post on SAVINGS ACCOUNTS.
Comment at the bottom if you have other innovative methods which works for you!
