As a business owner, do you want to know how to start saving?
Are you always in debt because of your inability to manage your finances and save money for emergencies?
In this blog post, we share practical steps you can use to learn how to start saving.
Hence helping you achieve financial freedom and avoid debts in business and life generally.
Stay with us to find out all you need to know on how to start saving.
How To Start Saving
Not being able to meet your needs because of a lack of resources is normal, and it has happened to everyone in one way or the other.
This is because our needs are insatiable.
However, to fulfill all these insatiable needs, we forget to manage our finances or save future use.
This kind of habit can lead to serious financial struggles and financial indebtedness.
This is why there is a need for you to know how to start saving.
First, let us find out what it means to save
The verb ” to save” could mean many things depending on the context in which it is used.
However, generally speaking, “to save” means keeping something safe or protecting something or someone from harm.
However, in the context of this discussion, saving means a conscious or intentional action to keep or store something, especially money, for future use.
Learning to save is more than just storing or keeping something only for the future.
It is also the ability to avoid wastage even during the present.
As a business owner, it’s important to have financial planning and saving skills.
This is so that when emergency business needs arise, you can easily meet those needs without going into debt.
Certainly, you can and should find joy when you save.
Doing so is very important in your life and makes you debt-free, and builds financial security.
This is why we have come up with effective methods on how to start saving.
However, despite the benefits and financial security that come with saving, many people find it difficult to save in their business or personal lives.
Let’s explore why this is so.
Reasons Why People Find It Difficult To Save
Some of these reasons include;
- They do not understand the importance or benefits of saving.
- They think their income/resources are too small to save something out of it, forgetting that you can start with little and grow into much.
- Also, they find it difficult to save because of misplaced priorities; They haven’t yet discovered what’s important to them. Hence, they spend extravagantly and on things that don’t matter.
- No financial plans/goals.
- Lastly, the wrong mindset, bad peer influence, and wrong association: They are surrounded by the wrong people who encourage them to spend unnecessarily. Hence, they find it difficult to save. Also, they have a negative mindset that they may not live long enough to enjoy their savings. Hence, they spend extravagantly.
Now you know what it means to save and why most people find it difficult to save.
Let’s discover practical steps that you can take to encourage you to start saving.
Practical Steps On How To Start Saving
1Make Up Your Mind To Learn How To Start Saving And Start Saving
Every accomplishment starts with the decision to try.
Also, the journey to becoming a better individual starts with realizing that there are some things you need to change about yourself and deciding to do those things.
Hence, making up your mind to start saving and changing your perspective about saving is an important first step.
Once you have made up your mind to start saving, your journey to financial freedom begins.
So, regardless of your income, you try to save something out of it.
Thereby helping you implement a saving habit.
You can not save when you have no means of earning.
Go out, look for something to do, or have a side hustle.
You can not be idle and expect that you will be able to save.
Do not remain idle and expect your financial life to change.
As a business inclined person, start that business or expand your business to increase your earnings so that you can save more.
3Adopt the Pay Yourself Principle
Pay yourself principle is gotten from “the richest man in Babylon” by George Samuel Clason.
You neglect yourself and pay other persons.
Paying other people means paying for goods and services sold by others.
Be sure to pay yourself a certain percentage out of your earnings, especially as a business owner.
This way, you can set aside the money you pay yourself as your savings.
Likewise, you could use the money you pay yourself to cater to your personal needs and set aside whatever is left as your personal/ emergency savings.
4Have Savings Goal
These goals help to put you in check.
You get to know the particular amount you will save daily, monthly or yearly and know how much you will profit at the end of each saving season.
With your savings goals in mind, it becomes easier to commit yourself to achieve those goals.
Also, you should attach a purpose to your savings/financial goals.
Your purpose may likely be to expand your business as a business owner, start a personal or business project, or acquire something new.
In all, keeping your goals in mind will also make you conscious of how you spend money to accomplish your saving goals.
As a result, helping you save money.
5Cut Down Your Expenses
The following are some of the business, work, or personal expenses we all make;
- Bills ( light, water, transport, phone)
- Purchase of groceries
- Vacation or outings
- Subscriptions ( email, cable, etc.)
- Shopping (clothes, shoes, bags, etc.)
All of the above is what we basically spend our money on.
But do you know you can actually cut down on these expenses?
By conserving energy and eliminating unused subscriptions, purchasing only the things you know are important, minimizing the number of times you go on vacations and outing.
In addition to how you can cut down your expenses, you could also move to a low-cost living environment.
Likewise, practice “do it yourself” techniques when possible for repairs at home or the office.
Also, keep a record of your expenses for the previous months to enable you to know how much you are likely to spend the following months.
Thereby helping you plan your expenses appropriately, change your spending habits so you can save more.
When you have so many debts, it’s difficult to have a financial plan, let alone think of saving.
Debt is the result of living above your means.
You want the things you cannot afford now, so you buy them with a promise to pay later.
So, when you receive your income, you have to pay off those debts.
This way, you have little or nothing left to take care of yourself, let alone save.
Hence, if you’re willing to start saving, you need to be committed to living a debt-free life.
If you can’t afford something at the moment, then you most probably do not need it.
Also, if you already have debts, try to pay them off as quickly as possible.
This is so that those debts don’t mess up your plan to start saving.
7Study On How To Start Saving
Studying helps you learn about people’s experiences, especially as it relates to saving.
In such books, people share the mistakes they made while saving and how they got out of such situations and became financially independent.
An example of such a book is “Richest Man In Babylon” by George Samuel Clason.
As a business owner, reading such financial education books expands your knowledge of managing your finances and achieving financial freedom.
Note that you can listen to tapes or watch videos on how to start saving.
8Know Your Wants And Needs
We know that it is difficult to satisfy man as our needs and wants are insatiable.
Notwithstanding the difficulty in satisfying man, you need to know your needs from your wants.
Your needs are those basic things of life, like food, clothing, and shelter.
Anything aside from the above mention is wanted.
Going shopping, vacation and outing are all wants/desires and not need
Hence, for instance, if you really want to go shopping, you need to do that according to your budget and less frequently.
With this in mind, attend to your wants bit by bit and carry over the wants you could not meet.
Trying to attend to all of your wants leads to frustration and overspending.
Even as a businessman, you know there are some materials you need to get, and you do not have the available resources, carry such a project over to the next month.
9Stay Committed To Saving
According to Vince Lombard, “the quality of a person’s life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavor.”
If you want to be debt-free and happy, stay committed to saving.
Do not only read books or articles on how to start saving, practice the steps, and be committed to it.
Stay committed to how much you will be saving, where you are saving, and the period of time you will be saving.
Always remember that commitment is an act, not a word.
Overall, these are some of the important steps to take to spend less and save more.
Now that you know how to start saving let’s consider where to save.
Where To Save
Where to save is very important as how to save.
If you do not have a place to save or store up something, you will eventually waste those things.
But, you can save things in the following places;
These are legal organizations that help people save money, valuables like documents, pieces of jewelry, etc.
Saving in banks is most times advisable.
You can go with a fixed deposit account.
This account is only for your deposit till the certain period you are due to collect your money.
So it can be in a year or more, depending on your agreement with them.
Banks also offer transfers between your salary and savings accounts.
You can choose when, how much and where to transfer money or even split your direct deposit.
This is so that a portion of every paycheck goes directly into your savings account.
Money is also stored here.
It can also be known as a saving box, and it has a small opening up where you can put in your money through.
You can keep it anywhere as it is portable.
Clothes, appliances, foodstuffs, etc., are kept here.
This is a room where heavy items are kept, and it can have shelves to differentiate where you keep different items.
In this internet age, everything thing is now online.
Gone are the days when we would need to go to the bank to transfer money to someone.
However, thanks to technological advancement, things are a lot easier now.
There are now online platforms where you can save and invest your money also.
An example is PiggyVest.
Importance Or Benefits Of Learning How To Save
Let us take you to know the benefits or importance of how to start saving.
However, knowing the benefits of a thing increases your level of interest for such a thing and even practice the methods stated.
Therefore, let us immediately look at the benefits of learning how to start saving.
Below are the importance or benefits of learning how to save
- You have a secured future.
- Change does not scare you anymore. Even if you lose your job, you no longer fear that you will lack because you have saved to fend for yourself in difficult times.
- It promotes financial independence.
- It helps you to achieve your goals. Goals of pursuing your career, buying a new house, car, etc.
- You can conveniently handle emergencies without looking for assistance outside.
- Leaving a legacy. Because you are financially free, you tend to assist others.
- It reduces stress, especially financial stress.
- It helps you live a debt-free and fulfilling life.
After considering the benefits or importance of saving, here are some financial wisdom nuggets or wisdom quotes to inspire you further on the essence of saving.
Inspirational Wisdom Nuggets On Saving
“Do not save what is left after spending but spend what is left after saving” by Warren Buffet.
“Earn as much as you can, save as much as you can, invest as much as you can, give as much as you can” by John Wesley.
“Wise spending is part of wise investing. And it is never too late to start” by Rhonda Katz.
“Rule #1: Never lose money, Rule #2: Do not forget rule #1 by Warren Buffet.
“If you do not know how to care for money, money will stay away from you” by Robert T. Kiyosaki.
“Do something today that your future self will thank you for” by Anonymous.
“It’s not how much you make, but how much money you keep, how hard it works for you and how many generations you keep it for” by Robert T. Kiyosaki.
“Beware of little expenses. A small leak will sink a great ship” by Benjamin Franklin.
“It is not your salary that makes you rich; it is your spending habits” by Charles A. Jaffe.
“Put not your trust in money, but put your money in trust” by Oliver Wendell Holmes, Sr.
“If you would be wealthy, think of saving as well as getting” by Benjamin Franklin.
“Penny saved is worth two pennies earned …. after taxes” by Randy Thurman.
Conclusion on How to Start Saving
As we have stated earlier in this blog post, saving means keeping something for future use.
However, also remember that it is not only for a future purpose but also for the present day.
Everybody has a reason or an excuse to give in this life, especially regarding saving, and you do not want to be part of them.
Make a difference and start saving.
The above-discussed steps are ways you can start saving.
No matter the amount you receive as your daily, weekly, or monthly pay, always save from that little.
Even more, there are various saving options.
You can save in a piggy bank, personal safes, commercial banks, or storerooms.
Overall, start saving now to build the future you want for yourself.