Saving is one way in financial management that aims to prepare reserve funds in the future. Savings also play a role in ensuring your financial stability if something unexpected happens in the future. Indirectly, saving can help you know about priorities in finance.
Starting a saving activity plays an important role in the financial flow, especially for those of you who have just started working and have your first income. In fact, saving is not always an easy habit for everyone even though they already know its many benefits for the future. This will become more difficult if you do not start to get used to saving the right way.
Saving is not just about how much money you can afford to put aside. More than that, saving is about forming persistent habits. The key word is consistency. On the internet, there are lots of easy ways to save according to your condition. If until now you are still having difficulty setting aside money, there may be something wrong with the way you save.
Signs That You Haven't Saved Properly
Some of you may have started the habit of saving, but are you using the right method? The following signs indicate that you are not saving properly.
1. Savings Account Not Separated from Daily Account
If your savings account is still one with the daily necessities account, it can be said that your saving method is not right. By combining savings and spending money, your account balance will get bigger. This actually encourages you to spend even more. Instead of saving, what is there is that the amount of savings will decrease due to out-of-budget spending.
2. Unstable Savings Account
When you already have a separate savings account, the next step is to make sure that there is no other activity in the account other than saving. Having a large amount of savings can encourage you to spend it occasionally.
In an emergency and urgent situation, you can still use your savings. Provided the value is not greater than the amount you save each month. If it's not in an emergency, but you still often use your savings to spend on tertiary needs or luxury goods, there is certainly something wrong with the way you save.
3. Savings Percentage Still Not Wise
Before receiving a salary, you should make a budget to determine the portion of savings, spending, and other social activities. We recommend that you set aside about 10% -15% for the allocation of savings. Ideally, the savings percentage is no less than this.
Along with the increase in salary or additional bonuses, the value of savings and the percentage should also increase. If the nominal money you save is still very small, while your income has increased, there may be something wrong with your spending budget.
Are you still experiencing any of the signs above? If so, now is the time to change the right saving habits. It's never too late to start improving financial management.
This is the Right Way of Saving According to Financial Experts
Of the many ways to save, the following are sources from financial experts. Reporting from the GoBankingRates website, this is the right way to save according to financial experts.
1. Set Automatic Debit to Savings Account
Farnoosh Torabi, a writer and financial expert points out that saving with automatic transfers is the most effective way. Torabi recommends that at least 10% of your salary should be transferred by auto debit to a savings account. That way, you will have no excuse for forgetting to save. It also avoids you being tempted to spend your income before putting it into savings.
Set the transfer amount and transfer date consistently which is directly transferred to a savings account. By applying this method, you have learned to save discipline the easy way.
2. Start with Small Amounts First
According to Clark Howard, a consumer expert, saving should start from a small amount first but do it regularly. Not many people can save large amounts, so start small.
If you are not familiar with the allocation of savings is 20% of salary, can start with 2% of salary. However, make sure that the percentage increases every month until it reaches at least 20% of the salary. Even Howard stated that the first jobber should be able to live off half his salary because he doesn't have many dependents and expenses.
3. Collect and Save Change
Ric Edelman who is the Chairman and CEO of Edelman Financial Services provides a special trick to be able to save properly. According to him, collecting change in the form of loose change can be used to buy goods with a large value.
For example, the change after shopping at the supermarket, if collected, can be used to buy coffee and lunch. That way you can save on lifestyle expenses and manage to save the allocation of savings money. This change will indirectly help you reduce the use of debit cards and credit cards to pay for a lifestyle.
4. Create a Separate Account
Ligwina Hananto, a financial planner quoted by Womantalk, emphasized the importance of separating savings accounts from daily accounts. By separating a savings account, you have saved money to use in an emergency later on.
You can choose the type of account that is specifically for savings, for example, CIMB Niaga TabunganKU which is a solution for Indonesians who want to save diligently. By using a special savings account, many conveniences and benefits are felt. One of them is a light initial deposit and no monthly administration fees.
5. Set Saving Goals
Ligwina explains that setting aside money without a goal is an easy thing to do. Don't just set aside money, but set your goals for saving. Start saving for the thing