Money as it were is a commodity accepted by general public as a medium of exchange economically. It is the medium in which prices and values are expressed; as currency, it circulates anonymously from person to person and country to country, thus facilitating trade, and it is the principal measure of wealth.Here are proven tips to make you a better money saver. Do not miss reading: Very successful people will not tell you these 10 things about themselves
The Functions of Money:
The basic function of money is to enable buying to be separated from selling, thus permitting trade to take place without the so-called double coincidence of barter. In principle, credit could perform this function, but, before extending credit, the seller would want to know about the prospects of repayment. That requires much more information about the buyer and imposes costs of information and verification that the use of money avoids.
Trying to save up for something big, like a vacation? Or even something a little smaller, like a new TV or a new cell phone? Or, are you just trying to put money aside for the future? Saving doesn’t have to be complicated.
Saving doesn’t have to be complicated. It is the same as following a recipe. Once you get the key ingredients right, the method will take care of itself.
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Saving is a word learned from the time you are gifted your first piggy bank.
As a child it is exciting to put away coins and notes from mummy, aunty and grandad, excitement building incrementally with the weight. The heavier it gets takes you one step closer to that giant ice cream or new toy.
Becoming an adult means trading up the piggy bank to a proper savings account. Gone are the days where birthday presents are cards stuffed with crisp notes inside. Growing your bank account means all the contributions come from your own pocket and the only way for it to increase is to have a savings plan. The sooner you accept this is the sooner you can start saving.
Below are 10 golden rules to make you a better money saver in 2022:
Never before has money been so important in the history of mankind. There’s so much of it yet, so little for another individual for sustenance. However, there are rules one must observe in order to maximize monetary value.
1. Have steady source of income
Whether you are a freelancer or a monthly salaried employee, it is easiest to set up a savings growth plan when you have money coming in regularly. If you don’t, all hope is not lost. It just mean you have to become more resourceful by creating your own source of income.
2. First pay yourself
This is where having two separate accounts may come in handy. Decide how much you want to save each month and set up automatic transfers for when you get paid. This makes regularly putting money into savings something you don’t have to think about with every paycheque.
3. Set Your Savings Aside
There’s no end to one’s spending. You’d always find one thing to buy. It’s imperative you save first. You can always live with what’s left of your income after savings.
4. Don’t Lend Money You Cannot Afford To Lose
Even the best of friends have been broken because of issues with money. It is true that lending is an act of kindness, its best to put into consideration the impossibility of getting back what you lend out. If it seems uncertain, then give out what you could easily forgo or none at all so as to preserve your relationships.
5. Invest Only When Your Principal is Insured
Many investment platforms seem too good to be true. They offer high interest rate only to cart away with investors funds.
So it’s best to invest only if your principal amount is guaranteed.
6. Set Aside Emergency Funds.
There would always be rainy days. An emergency fund savings would help cushion the effects of the unexpected events.
7. Stay Away From High-Interest Loans.
Bad debts can ruin your financial life as fast as fire. If you must take a loan, compare agencies and choose the one with the best interest-tenor ratio.
8. Make Money Work For You.
Increase your earning power by reinvesting some of your money in yourself. You could get a certification or learn a new business.
9. Always make budget
When you make a monthly budget, consider overestimating your expected costs. This way, you may end up with leftover funds, which can go right into savings.
Real-life reasons to save are the best motivators. After you have enough saved to support yourself for up to six months, start saving for short-term and long-term goals using this SMART* guideline:
• SPECIFIC goals inspire. Setting a clear goal will help you focus on saving for it. Example: Save enough for a vacation.
• MEASURABLE goals let you see the real task at hand. By using real numbers, you can measure your progress along the way. Example: A trip costs $3,000 and I have $800 saved
• ATTAINABLE goals pay off. When setting your goal, ensure that it is realistic and within your reach. Example: I know I can save enough money each week to pay for that trip
• RELEVANT goals make good sense. Set a goal only if you know it will be meaningful in the long run. Example: I am saving for a home rental because it’s cheaper than staying in a hotel
• TIME-RELATED goals have a real deadline. Setting a time frame for your goal will help you stay committed to reaching it. Example: I want to go on a vacation by next summer.
10. Spend Smartly
It is hard to discuss saving without mentioning the word ‘spending’. It is normal to desire things but in order to stay on track with your savings plan, you also need to plan to spend wisely. Spending within your means may sound simple to follow, but many people spend more than they save, which equals debt. The good news is that it can be avoidable, and it is reversible over time. With a little planning, tracking and adjusting your spending, you can live happily within your means and save, continuously building the life you want.