The more you save, the faster you will be able to accomplish your financial dreams. You must have been told zillionth times to save money by your parents and grandparents since you were a kid. We all know the significance of saving money, but only a few are able to do it.
Having a saved fund is a great way to care for future financial requirements. Like buying a new house, retirement, school/college admission expenses of your kids, etc. An upright financial backup offers excellent support during several emergencies you might face in life.
It’s well and good if you have a decent amount saved in your account, but emergencies can quickly drain it in no time. You can opt to take loans from money lenders during such hard times. Even if you have a good balance in your account, having extra will offer peace of mind.
Some people hesitate on applying for loans because of not having a good credit history. But you are eligible for loans even with bad credit. You can still think about taking out loans for bad credit history with no guarantor and no hidden fees that too on an instant basis.
Why saving money is more important?
Saving money is as vital as earning it. There are various reasons to save money, but three primary reasons are mentioned below.
Financial security: Nothing is worse than falling short in your finance, especially when you need it the most. There are numerous unforeseen emergencies you might face in life. Losing a job, breaking down your car, medical emergencies are among bad nightmares in one’s life.
If you are well-prepared financially, you will be less anxious and petrified in such situations. You should have emergency funds to take care of you and your family’s financial expenses for at least 3-4months.
Funding own house: Having a place in your own name is one of the biggest milestones you achieve in your life. It’s never too late to start saving money for the cash down payment you need to pay while buying a new house or flat.
You would want to decrease the mortgage amount to the maximum so that you can avoid paying the interest for longer. If you make a decent down payment, you come closer to owning the house entirely on your name, simple as that.
Save more, spend less: We keep spending more and more on unessential things than saving. You should figure out all the expenditures and save a little amount every month. Keep aside the savings first, then move forward by paying expenses. It will help you not spend money recklessly.
If you save first, you will find new ways to do more over time. It will help you make a better financial decision and make your saving game a powerful one.
How to save money?
There are several better ways to save money than just putting it into your secret piggy bank or somewhere inside the locker. Here are the top proven methods to boost your savings quickly.
1. Open a high-interest saving account: If you let your money sit in your locker, you will gain nothing from it. Rather keeps that money in a high-yield saving account to gain monthly interest; otherwise, that money will have no value.
Don’t opt for a local commercial bank as most of them offer interest rates less than 0.2%. Research online some banks offer above 2-2.5% interest on your money. When the cost of everything is skyrocketing, don’t settle for anything below 2%.
2. Dedicate a fixed amount to the savings: Consider saving money first before spending anything on your expense. Dedicate a fixed percentage of your income to your savings account. If you put 15-20% of your fixed amount into your saving fund, you will have a pretty respectable amount of money in your hand.
3. Budget and know your finance: Focus on tracking all your income and expenses in a month. Compare your income with the expenditure and see how much you can manage to save. Try not to spend on nonessentials. Analyze the progress and increase the savings ratio if you can.
4. Reduce your debts: Before beginning your money-saving journey, pay off all your ongoing debts. If you delay paying off your debts, it will become more prominent over time because of the interest involved.
If you cannot pay your debts, you can think of taking out loans for bad credit (if any) with no guarantor and no fees. You get funds on an instant basis with comparatively low-interest rates than a bank.
5. Automate bills and savings: If you forget to pay bills on time, you will have to pay late-fees charges, of course. To avoid paying additional charges, pay them off before the due date. In automated savings, an amount will automatically get transferred to your savings. This will make your savings easier by limiting you from not spending that fixed amount on anything.
6. Set a spending limit on cards: It is one of the effective ways to save money quickly. You can put a limit on spending on all the cards you use. This will avert you from overspending and manage your finances very well.
7. Sell your unused possessions: There are hundreds of things in our house which we rarely or do not use. You can make money from selling those items and deposit the earn cash into your savings account.
Take away
Savings is never easy, but it helps you visualize and accomplish an exciting future. If you have not started yet, do it from today.
Having a decent amount of savings is not an overnight affair. It takes patience and dedication. If you practice these steps in your daily, you will make a huge difference in managing your finance.
Many people choose to stay on rent and prefer paying monthly rentals than buying a house. Just think about it. By paying regular rents, you are making someone else. Why not make yourself rich by doing the same via paying monthly instalments for your own house.
If you don’t have enough funds, you can pay down payment with quick loans. Many money lenders help buyers to pay this amount with fast loans. You can think of taking out loans for bad credit with no guarantor and no fees and getting instant cash for your needs.
Remember not to touch your emergency funds unless it’s the last resort left.
Emma Anderson is a financial advisor at Quickloanslender who always believes in researching hard to know her clients’ financial problems. She takes the time to understand their financial wants and needs to write the blogs on them as the solutions. In her long 14 years of experience, she has written plenty of blogs on the financial and business sectors of the UK.
Emma Anderson has been recognised for her work in financial planning and her blogs are regularly published in the website of Quickloanslender. As far as her educational qualification is concerned, she has done Masters in Accounting and Finance, and done PG Diploma in Creative Writing.
