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3 Ways to Reform Your Troublesome Savings Habits

Image: 3 Ways to Reform Your Troublesome Savings Habits
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By    |   Thursday, 12 Oct 2017 04:11 PM

The savings habits of Americans have been one of the contentious issues in the past decade.

It’s no news that Americans have bad reputation when it comes to savings. This is strongly attributed to "living above one’s income." It is even shocking to know that younger people (those 18 to 26 years old) have adequate savings more than the older people in a study.

In 2015, GOBankingRates asked more than 5,000 adults how much they had saved in a savings account. The results were startling: 62 percent said they have less than $1,000 in savings. In 2016, the same question was asked, this time to more than 7,000 people to see if Americans’ saving rates have improved in the last year or so. But the results are even more surprising — the percentage of Americans with less than $1,000 in savings has jumped to 69 percent.

A survey by Bankrate.com in 2017 shows that 32% of those aged 53 to 62 have no emergency savings, the highest among the different age groups. Those older than age 63 reported the lowest likelihood of empty savings and 44% of them have enough savings to cover at least 6 months’ worth of expenses. Whether you’re a business owner, freelancer or an employee, saving is very crucial.

Here are 3 things to do to re-invent yourself and become a super saver;

  • Inculcate a Saving Habit

The only way to start doing something is to start by doing it. Living a financial disciplined life is a habit; the more you sink this into your brain, the more you developed the consciousness to make savings a lifestyle. You need to make a conscious decision to save or else you’ll not have reserves for dealing with emergency situations and exploring business opportunities.

Savings is a habit especially in our world ravaged by recession, unfavorable government policies, intense business competition, changing consumer patterns, unpredictable business environment, natural disasters and other unforeseen circumstances. One must be adequately be battle ready because we live in an embattled world. That’s why we need to inculcate the habit of savings.

  • Automate your Saving Responsibility

Majority of individuals lack the self-discipline to set aside a portion of their income every day/week/month for savings. This is one of the reasons why the public and private sector organizations initiated pension and gratuity. You can overcome this challenge by automating your savings responsibility to your financial institution. The banks help their customers transfer a fixed amount of money from their salary or business account to their savings account every week or month.

  • Monitor your Daily/Weekly/Monthly Expenditure

Your ability to save is also dependent on your daily/weekly/monthly expenses. It’s shocking that most individual do not examine their expenditure at the end of every month to know exactly where your paycheck is going and which areas you’re overspending on. Without this consciousness, you’ll hardly keep a proper account of your earnings.

Monitoring your expenses is a key step toward forming a realistic budget. This can be achieved by using spending tracker App that can help you track your expenses and make you to strictly adhere to your monthly budget. You also need to shop wisely. Don’t embark on impulse spending rather look for where you can get the best deals by signing up for a warehouse club and buy stuffs in bulk.

Use promo codes while shopping. This has worked for me. In an email interview, Maulik Patel, Director of Dealslands said that ‘making use of the coupon while shopping will help you get items you need at the cheapest rates, and you can easily save up to 50% on various items’. Strict financial discipline is a habit. Unnecessary spending leads to penury.

Savings is a decision propelled by discipline. Make that decision today and you’ll not regret it.

Richard Agu is a Researcher, Entrepreneur and Freelancer, passionate about entrepreneurship and self-development. Currently, Richard writes for Entrepreneur.com, Goodmenproject.com, among others. Follow him on Linkedin.com by clicking here now.

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It’s no news that Americans have bad reputation when it comes to savings. This is strongly attributed to ‘living above one’s income’. It is even shocking to know that younger people (those 18 to 26 years old) have adequate savings more than the older people in a study.
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2017-11-12
Thursday, 12 Oct 2017 04:11 PM
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