I earn like a normal average executive and as much as I tried to do my best so I get more commission and side income, I will never be able to save anything at all if I don’t make myself to.
I can easily save 50% of my income if I want to. That said, to spend that 50% is equally easy. I would love to spend all I have, however being a single with very unlikely chances to get married and give birth to children, I’ve got to have extreme levels of discipline.
Here’s the steps to achieving a desirable saving account:
1. Identify the goals/purposes of saving
• For me, I need to save up for my own house & rainy days. It’s cos of this strong desire that pushes me to save harder.
2. Set a sum that you want to put aside into the savings monthly
• I list out all my expenses and commitments first (bills/family allowance/insurance), followed by the amount that I can spend (usually I’m very thrifty. I give myself only $500 to spend) and lastly will be the saving amount.
3. Think about the $$ you will see at the end of the year
• work towards that
4. Restrict buying anything that is not a need
• if you already max-up my own spending amount
• once in a while when I reached my target saving, I will splurge a little on something that I’ve been wanting to get
5. Avoid eating out
• Eating at restaurants and cafes easily set back by $30-$50 which can be your potential cost for 10 budget meals
• When I eat at the canteen and crave for that 100plus, I will wait till I finish my meal and get it from the vending machine at $1, instead of buying from the drink stall at $1.50.
6. Take public transport
• Taking cabs burnt my plan to save 50% of my income! This is one point I need to change.
Rich people may not have the richer income to start with. Start saving to feel rich.