SAVING PRACTICES THAT YOU SHOULD KNOW

Saving is not everyone’s cup of tea but it is one of the best practices we all need to learn. This can come as something that will turn out to be a habit or just a normal routine foe every individual. Over the years banks have been promoting opening of savings accounts more than ever.

Though banks have a reason that works for them it could work for you too in the long run. You have to know that you cannot just bring up saving without giving it a thought and it should not make you feel like you are denying yourself and luxuries.

Saving has different categories that you have to understand so that your saving pattern is not all over. There is no problem with opening a savings account for every purpose you have. Now let me make you understand saving.

Have a purpose for your saving, this makes you committed to saving.

LONG TERM SAVING: This kind of saving is often attached to buying houses, land or retirement. This pattern of saving can be difficult from the beginning but as long as you know the importance of what you are saving for it will be easy. Banks can help on this type of saving by open  a fixed savings account for a specified period of time. This kind of commitment should be assessed first by looking at your budge and how much you want to be putting away.

SHORT TERM SAVINGS: As the term already explains itself, this is saving for a purpose that may not need lots of funds invested and it can be achieved in a short period of time. This might include things like saving for clothes shopping, buying a laptop and going for a mini vacation in a nearby town. This type of saving can also be made through banking where you can agree on easy access savings.

Through this kind of savings be sure to discuss all saving types with the bank that you are affiliated with. You can have a regular savings account that you put money in to make sure you are comfortable and not totally broke which should be everyone’s kind of saving patterns. Regular saving account can save you from borrowing money in case you run into a shortage or you need a top up to buy something. Even when you are running out of supplies in the house this kind of saving can save you.

TOP REASONS FOR SAVING

There are  common reasons why people save and this can give you a highlight of what you can save for.

RAINY DAYS: This does not mean literally rainy days but when you need that top up or when you are in need for money when things are not going according to plan financially. You need to know you can rely on yourself when times get tough before you can approach anyone.

TRAVEL: Traveling can be very expensive if not saved for. Going on spontaneous trips is a bit difficult these days as everything has become expensive, you do not want to settle for shabby places when you get to the destination because of prices you cannot afford. Planning and saving for international travel is so important, I cannot stress this much. You can open an account for this sole purpose and even use the card given to you when you travel. You can communicate with your bank to make you a card that is accepted internationally than a credit card that you will end up running empty and paying lots of charges to the bank.

CAR: I know there is an option to buy a car through a bank but some people like buying their stuff cash. This is a great way if you are not pressed to own and and not minding to wait until you can afford a car you like and buying it debt free. This journey can be a bit difficult but as long as you understand the maths around it, no worries. Sometime you can save up for a car for two years instead of buying through the bank and pay back for 5 years with interest. Choose your battle well.

BUYING A HOUSE: Houses are expensive and it is no doubt why most people take mortgages and prefer to pay back for a period of 20 years less or more. Houses are not like cars except they are super expensive cars. Everyone dreams of owning a home and this is a big commitment. Do not worry if you cannot afford to be saving large sums of money to buy a house it is not everyone who can do it.

ELECTRONIC GADGETS: Technology is moving faster than how much we earn. Everything is becoming expensive and whenever we try to catch up we still get left behind by those who can afford it. Tell you what you can actually save for these gadgets. Do not be in a hurry to buy everything that is on the market stuff changes every month. Good computers do not get updated every second!! They take time before new releases are out so that is what you can invest on. In a period of two years all you can do is upgrade version of your computer installs and you are ready just like everyone else. After buying what you desire do not stop saving. This makes it easy to be on top of your game. When a new version is out you swap and top up or yo sell  to someone who has been wanting what you have but could not afford the “NEW” price.

This is what the world of saving looks like. We all have a purpose of why we save and we can achieve most things doing this. Saving is one of the debt free life tools. Keeping some money aside is like an insurance we create for ourselves and we can rely on it during hard times.

I hope you have learnt something. I would like to hear about your saving journey.

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