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Today you are going to learn three ways to save your income that have been effective for so many years. The only problem is you never knew. However, let us get a lie out of the way.
To save your money is not simple. I love to be direct and blunt when telling people the truth about a certain thing. To be successful at saving you need to make a commitment towards it, you have to psychologically, mentally, emotionally, and physically set your mind towards it. You would have to make sacrifices, by letting go of all your wants and focusing on your needs only. Sometimes even your needs need to be priorities, that’s heartbreaking enough. But here is the good news, you would be glad you saved. Saving is the only thing you would ever do in your life without regrets. Just make sure after all the sacrifices, you put your saving into good use.
5 secrets about saving
1. First, you have to figure out if you are a saver or a spender. If you are a saver, this post will open your eyes to better ways of saving. Being a spender is not a bad thing, the problem comes only when you spend more than you earn. If you are not there yet good, all you need to do is discipline yourself. Asking yourself this question is a great step to becoming a better saver.
2. Savings are not only for rainy days, get that out of your head. It is very poor motivation. I love shoes and I always try my best to go for the quality ones that last. However, this means I buy expensive ones but as a broke girl trying to fix my finance I can’t carry half of my months earning to buy a shoe. So I save for it. Let your motivation to save be something you love or will want to achieve within a time frame. Get this right, I am not saying we shouldn’t save for rainy days but for more precise things. “rainy day” is ambiguous you can end up spending it for something not that important.
3. You need help to save. Have you ever heard the saying that what one person couldn’t achieve two or more persons could achieve? This applies to savings too. Friends, family, and colleagues could help you save, in a better way than the usual safe keep method you know. I will talk more about this in the second way to save.
4. Your savings must not be big because little raindrops make an ocean. All that is needed when it comes to saving is consistency.
5. Becoming good at saving doesn’t happen overnight. Practice and exercise saving, allow me to say it like this. You will gradually become better at it.
Way NO1: Get a piggy bank to save your income
Not that jar you can open and close anytime you want to. I mean an actual piggy bank made of ceramics, which you have to break before you get your money out. So the next time you go to get a piggy bank for your son, daughter, niece, nephew or a little cousin get one for yourself.
Saving using my piggy bank saved me from debt. It can do same for you.
How to save with a Piggy Bank
The piggy bank is not restricted to some people but it works better for some people. If you see your paycheck weekly great. How about in two weeks? great! Do you get tips at work? Awesome! Hurry get your bank and dedicate every tip to it. I recommend if you have a low income.
Don’t get a bank small just for coins, that’s a no-no. Get a big one that you could squeeze a note into it. I won’t fix an amount in your mind because saving with a piggy bank is meant to be exciting, not intense. So you can’t keep count of how much you have saved. It works better with a time frame.
For a better outcome with a piggy bank save for at least six months. A year is the best. But if you want to save for less than six months, let’s say three months then you have to be frequent. What if you want to give the piggy bank a try for a month then you save daily.
Don’t have a fixed amount rather have a minimum amount. For instance, $5 is your minimum but you can save $10 or more amount. Try your best not to go below $5. But hey you felt like putting some cash into the bank and at that moment what you got is not up to $5 go ahead put it in. The aim is to save right? so let nothing stop you.
A vacation is all you want, a piggy bank can help you save for it. I have saved from the second half of a year just to have a great Christmas celebration, buying the best gifts for family and going to all the fun places possible. Your vacation could be more expensive than Christmas presents so you could save for a whole year. No matter how good your income is a piggy bank is important. It could be another saving apart from your main savings.
2 different saving phase
1. Too broke to save. when you are at this phase. your problems are bigger than your income, so it becomes really hard for you to save. If you are in this category the second and third ways might be your way to save.
2. Too fixed too save. At this phase, your finances are just OK for you. No debt to settle and no problem at your level too big for your paycheck to settle. You obviously don’t see the need to save. I will soon tell you why you need to save because trust me you are still broke.
Way N02 : Friends/Family/Colleagues with benefits
Remember I told you when it comes to saving you need help. If you have forgotten scroll to the top and read the 3rd secret of saving. This is not the old conventional saving method you know. Where you take your money to someone you trust and ask them to save keep it for you within a period of time or when you will need it. No this is not it. Yes, you need trust but not only on one person but on a group of people.
How it works
You have to be a circle of close friends, colleagues, or family. Having the same financial struggles and possibly earning within the same range. Bring yourself together and plan on contributing to help each other out. Be at least 3 in this group, but your number can be as high as 10. However, you have to be sure you can trust these people and yourself.
For instance, you all earn between $1500 to $2000 a month, you should be able to put in 10% of your income. But all of you need to agree on a fixed amount. Is it $100 monthly or $200. I am fully aware some of us earn less, just go according to your income. I am using the dollar currency because everyone can relate to it wherever. However, if you try to change the amounts I used to your currency and found it outrageous. Please stick to your currency and save according to how much you earn.
The next thing is for you to agree on who takes the money first, you can make that decision however you guys want to go about it. If you are 5 in number and you decided to go with $100. It means that at the end of every month for five months each of you gets to go home with $500.
This is a typical example of a contribution or support. Jane needs help why don’t we support her, but this time around Jane is also contributing to the support meant for her. Everyone gets their turn for support.
Way NO3: The cooperative society way of saving your income
This is my last and favorite because I am the type of person who looks far into the future. Like ten years from now. If you are like me you will love this one. A cooperative society gives you the opportunity to save very little money for a long period of time to start a business or make investments in the long run.
This is how is works
Just so you know Walmart part ownership is by cooperative societies. Do you know that big football club Barcelona with stars like Messi playing for it? Yeah, it is owned by a cooperative society with 140000 members. This is how large you could grow your cooperative society. You have to start somewhere though.
First is getting people with the same ideology as yours, friends, colleagues family members, church members, club members. Just the kind of people you often relate or spend time with. Throw the idea of starting a cooperative society with them, hear the response, and know if they find it interesting and would want to be a part of if. Create a discussion panel physically or on social media groups and ask those interested to join.
I don’t know the law guiding cooperative societies in your state or country, but you need to get registered. Give your society a name and make By-law guide members. I know that there is a minimum number to start with. Make inquiries before starting.
We started a cooperative society in February this year 2018. For our first meeting attendance was 7 members. We have grown to 20 members and we are still on baby steps. The aim is to save money contributed by each member for a period of years. This money is to go into investments and businesses. All of which we have discussed what those investments and business would be. There is a registration fee for new members and an amount to be paid monthly. I love being a part of something new starting from the beginning, it gives me room to learn something new and share something new.
Using this little example of my cooperative society I am sure you have a better understanding of how to go about one. It is a long term saving method, you can say this one is for rainy days.
From top to bottom
Get a piggy bank and have fun while saving
When it comes to saving money you just might need help. So it’s ok to have friends with benefits.
Little raindrops make an ocean. A cooperative society could be the start of a great future.
Drop a comment if you have a question or you can read this amazing post on making money from your passion.