I read Strive Masiyiwa the other day, Zimbabwe's first billionaire.
He was considering what they should do to increase the world's rich ratio. His prescription amazes you.
He remarked, "Let more open bank accounts."
Comprehension may sound too straightforward, but saving money will help you on your way to wealth.
One big problem with this generation is that most are spenders.
To know how to save money, I have five tips for you.
1. Decide what you'll do to save money.
They're the answers, because if you don't know why you're running, or you won't be tired of jogging hard!
Do you want to save money to buy some assets? Must you save money at home? Must you hold the funds to start your own business?
It would be best if you prepared for that. You'll be a money-spender if you can't save money.
2. Create the first mindset, not the bank.
I know you want to save money to buy stuff for a specific price, but it's like most habits to grow a saving habit.
Maybe you need to start a bit (most especially when you earn very little income).
Concentrate initially on habit building.
Generally, most people think, "I barely make Ksh.50,000 a month. I've got a wife and three children. How to save this small salary with money?"
When these people benefit from Ksh.100,000, they won't save any money when they raise Ksh.500,000.
Why is that so?
They have no routines to save.
It's like a custom save. Who said you should pay ksh.100 when you had Ksh.100 and couldn't give ksh.50 to a supplier who needed you?
Now, even with a small income, start increasing your saving habit.
Don't look at how much you keep today. That's not important. It's not. The critical thing to watch is tradition.
Ensure you consistently save money (no matter how small)
What's going to happen? You'll love keeping the money you'll enjoy.
When you get there, you don't have to inspire someone to save you more.
3. Appreciate what the saved money would have to do with.
You do not know; let me enlighten you. Maybe you don't. Both make something to please or relieve pain.
Why do people buy borrowed cars, even though it's stupid? They're driving a fun car.
A few years ago, my lady-friend told me, "See, I still buy and detest anything." She detests those things because she never desired them. She just bought them, hoping to wear them with joy.
It's what I mean now.
If you can build more fun in your heart when you spend your saved money, you can't waste money on stuff you don't like.
He'll be happy to invest so much money right now, but I'm better than that. I'll spend the token I have most of the time, even though I know it will affect my everyday life.
But how do I get the guts to save rather than spend?
Since I still imagine how I will have enough money in the future. This fantasy makes me glad (which is more significant than what spending will give me)
You can intuitively understand how to save money when the image of what you want to do with the saved money gives you more satisfaction than spending your money now.
4. Distinguish wishes and necessities.
You may believe me, but more than half of what we buy is a need. Second, we don't even need them. We want them because we see people using or owning them.
If you pay attention to women, they will look at other ladies as they walk down the street. They think stuff like, "This blouse is beautiful on this girl; I want to buy one like that," and "This skirt's clever on this lady." It attracts more attention from men. I'll have a similar one."
While these women had more beautiful clothes at home, they will continue to buy more only because they see those designs on other ladies. It fulfils your need, not your need.
Some guys start saving for a new TV when they spot a unique, trendy TV in a friend's living room. They'd get the idea that "Mike bought the telly, and it's enhancing his living room's elegance." I'm going to have to buy the TV."
Another enemy is ads. When we read or listen to the ads, we want to instantly taste the joy that the ad offers to begin to strategize how to invest our money in what we see in the publicity.
To be a savvy money saver, you must ask yourself this question before deciding to buy something. Do I need this thing? Is it possible to live without this item? What's the worst that can happen?
5. Deduct a certain percentage of your pay, even before you get it.
An outstanding book called Babylon's Richest Man has a great concept called "Babylon's Richest Man." The idea is to pay yourself first.
This book's creator, George Samuel Clason, explores how people are used to paying themselves last.
Well, before they get their monthly paycheck or some other source of income, most people will sit down and list everything they want to buy, from food to clothes, holidays, and phones.
By buying all these products, you merely compensate the business owners who produce them. Is it any wonder that wealth continues to accumulate?
So, you pay yourself last. or you don't pay yourself at all (because you've spent all your earnings on things you want) (not need)
But what if you paid yourself first?
You surely do.
Let me suggest.
What if you could order your boss to deduct 10%, 7%, or 5% of your paycheck (even before he pays you) and deposit it into a private bank account that belongs to you but you don't have easy access to?
The five ideas above help save money.
In future, I'll publish additional articles with more money-saving ideas.