Saving money involves keeping a small portion of one’s income away for future use. This money is good for un seen expenses/emergency fund, saving for a big purchase, retirement or insurance. When it comes to saving, a little goes a long way. Start small, where you are with what you can. A little goes a long way but it all compounds in the end. Saving money generally depends on one’s;

• Your savings goals

Different people save money for different reasons which the amount can be small or large. Larger purchases like a home generally take more money and a longer period of time than smaller purchases like a new computer. People with larger savings goals need to save much more money than those with smaller ones. However despite the circumstances, it’s always advisable to save as much as you can due to life’s uncertainties.

• Your income

Generally the more income you make, the more you are able to save money. It’s always advisable for one to live below their means in order to have much to save and to also avoid lifestyle inflation when having more income. Keep expenses low, or reduce them but don’t raise your standards just because you’ve earned more money.

• Your expenses

The more expenses one has, the less they are able to save money. The reverse is true. It’s always advisable to save money in the early years of life and also build something for yourself and your career to have money for large expenses like a house, children, studies, trips etc. The earlier one starts the better.

• Other factors

These can include un seen expenses, career ups and downs

You can save money in the following ways

Step one: Create a budget and stick to it

A budget helps you to map out your income, expenses and lifetime goals so that you can balance everything and spend accordingly. You can create a daily, weekly or monthly budget. Such expenses include: utilities, savings, outings etc.

Step two: Pay yourself first

After earning money, it’s important to put away 10% of whatever income that you earn towards your savings and then following your budget accordingly. Pay yourself first, then work out the rest.

Step four: Have multiple streams of income

It’s not good to have all your eggs in one basket however big earning that could be. More income streams act as a buffer incase all the eggs in the basket broke. Besides that side income can be saved and be put into investments or other things like mortgage. The more you make, the more you can save.

Step five: Live below your means

Live below your means for a while and save that cash to be put towards your savings goals. It’s also very important to get focused, avoid lifestyle inflation and YOLO friends especially when we get more income. Living below your means also involves frugality and cutting down on expenses and most things that you can live without.

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