Want to make your future brighter no matter how much you earn, how much you save each month matter and that is the key to become rich or secure your future. The saving habits bring you the freedom you want ever in life. In this post, I will show you how to save money and live better.
This is the data that shows us that majority of people live their lives paycheck to paycheck, even after years of job, they never save any money for the future, how they can secure their future when they won’t have any money to eat or survive.
This question of survival is very scary and if you have not developed a habit of saving money then you should start today, it’s very important. there is some residual income formula to generate passive income.
And when we start saving money from a very early age then the journey to financial freedom becomes easy for anyone.
The bank balance and wealth give you peace of mind and satisfaction and responsible for your happiness.
Why It is Essential to Save Money
It is very important to understand to everyone that why saving money is important from your monthly earning, there are several reasons to support this thought. And it is a necessity that should not avoid.
Some people say that when I will start saving when I would reach that amount of earning or that level, let me tell you that this is an excuse and that is not acceptable.
Maybe you are a luckier one you will reach that goal but that’s not happened with everyone. And it’s a matter of habit not of earning.
The few reasons that support saving money are that maybe look small things but whole life dependent on that.
You start saving money for your retirement from today still not too late.
You can save for your children education because that makes them better human being and open the door of better opportunities for them.
For medical emergencies or you suddenly lose your job it happens in real life with people. It’s a scary thought for people who have only one source of income. If you have a multi-source of income it will not harm you much. But to create multi-source of income need money for that need to save money.
For your children’s marriage, so that they get a better life partner.
To enjoy the luxury of life you need to save money, financial freedom has not come only for those people who earn a lot, that comes to those people also who save money.
Common Mistake that Should be Avoid in The Process of Financial Freedom
Some people face a problem when it comes to the question of saving. Or it could be a mistake you make while saving money.
- Overspending habit is the biggest mistake people do when you know you don’t have enough money even for expenses.
- People buy things then they see some sales going on, they think they are saving money, but actually, they spend money on unwanted things.
- People don’t have an expense plan in place, they don’t know how to expense money, I am not saying it is their mistake, they are right, it’s not taught in school, you have to learn it yourself.
- One more reason arising in my mind the delaying thinking about the future or choose your career lately this is more common in India with many people. Because of people not serious about their life and future goals.
And you are feeling guilty about this thought don’t worry, you are not alone here, it’s not your fault its upbringing and around the environment’s impact. It could be this is my personal opinion.
There are Few Things You Can Do To Save Money And Live Better
If you want to save money and live better lives, you need to understand the basics of finances and more alert when spending money.
Where you are spending money, how you are spending money and the most important question of how much percentage of your total income you save every month.
If you make a clear plan of your finances, you can easily manage your finances and more effective ways you can handle and can secure your future.
How to Budget
The data shows that a few percents of people budget their spending or make a plan for how to spend your money in a more meaningful way. And the plan should be on paper and in a concrete way not in mind, everything should be defined manner.
Without budgeting, it’s common to overspending and impulse buying that destroy our lot of money on useless things.
With proper budgeting, you can track your spending and fix a certain amount of money to your savings.
Sit down and write down your expenses, cut down what you can, and create a plan accordingly.
Always Avoid Paying With Credit Card
Always keep in mind that you have to pay your bills in cash never ever pay with credit cards because when we buy the things or pay the bills with credit cards brings you debt or over expenses on your table and you end up paying extra.
And one more thing paying with cash develops our habits in the long run in a good way.
Set Your Saving Goal
Design your life financial goal if you really want to achieve financial freedom or comfortable life. You need to set goals for retirement, for your dream home, children’s education, or whatever your goals is.
You have to make or set your financial goal and how much money you need to achieve that, set aside the exact amount every month to each goal. And always avoid impulse purchases that will save you unimportant things.
With a few changes in your saving plan, you can achieve your goal much faster rate because the exponential growth of your money makes your process much easier. If you are busy in your job or business still you have some great option to generate multi-source of income through index funds.
It’s a habit of people they always postpone the saving part for the future, but don’t do that, it’s better to start today.
Make a Resolution Today
You can imagine how much money you can save for your future if you addicted to smoking, drinking, or outing. I personally wasted a ton of money on cinema every week and was addicted to tea and coffee. I could save that money. And that money in stock could multiply in many folded.
Not only that these habits eat your money in medical expenses as an impact of that. If you can quit such nasty habits you can save a ton of money that been wasted for years.
We all like foreign trips, this is an enticing thing for everyone but going on loan not a good idea, I am not against foreign trips, this is good for people who have their own money.
You can choose a local trip instead of a foreign trip. There is a lot of things happen in our daily life where we can save money, which is going to waste in terms of impulse buying.
You know you can save simply packing your lunch, and having coffee at home.
Suppose you take lunch and have coffee and you spend $20 and 5 days in a week you spend $100 in a week time, $400 in a month time and $4800 in a year time, and if you invest that money in stocks imagine how much you can earn that little saving and cut to your extra expenses.
Multi-Source of Income
This always a better way to achieve your financial security in a faster way. To increase your income there is a lot of ways.
The era is of technology that can help you in a big way to achieve your financial goal. And your income diversifies this way that is a good thing for your future in case if you face any problem in your job. In this way, you can save money and live better in 2020.
Due to technology, it’s easy to handle your second source of income with your current job, it saves your traveling time and money both.
In a nutshell, money is the most important thing and motivation factor for anybody. If you want to be financially free, its important for you to know saving money for future security is a way to happiness and worry-free life. And always focus on long term goals rather than short term goals simply implementing these above things. And it will help you to save money and live a better life.