The dawn of a new year marks the culmination of resolutions. We make resolutions to read more books, adopting healthy habits, living a happier and more fulfilled life… you name it! Personal financial aims almost always gets its fair share of the New Year’s resolution plan.
Savings come on with a plethora of benefits; you can capitalize on interest rates, secure your retirement life and meet expenses for unforeseen contingencies. To make sure you reap on these benefits, here are 5 personal savings habits you should cultivate in 2019.
- Practice Frugal Living
Ever heard of the phrase ‘Living within your means’? This phrase isn’t coming out of fashion anytime soon. Frugal living calls for spending less than you earn. You consciously develop a habit of slashing off unnecessary expenses for savings. Here are some ways to practice frugal living;
- Cut-off all subscription costs. The internet is a goldmine of free information and services. Take advantage of this.
- Limit eating at restaurants. Cook your meals. It will save you money.
- If you must purchase, promotional products would be ideal.
- Refrain from using credit cards. They are parasitic. They can zap your savings with high levels of interest rates tied with their purchases.
- Craft your budget
One of the most crucial personal savings habits is crafting your budget and sticking to it. Split your budget to carter for all the necessary bills and save some portion. Crafting your budget will help you weed out unnecessary spending.
- Open a savings account
The earlier you open a savings account the better for you. According to the Forbes magazine, saving 10% of your monthly income would suffice. It offers the prospect of fetching you revenue daily through compounding.
Periodic deposits to your savings account calls for massive amounts of discipline. One rule of thumb worth noting, pen down directives with your bank to deposit to your savings account on pay check. This will limit any defaults.
- Create a retirement plan
It’s definitely one of the top-notch ways of optimizing on your personal savings. This could be done through your bank, cooperative society or any trusted company involved with retirement plans.
You make periodic payments to the bank or company on a monthly basis. These amounts amass to ginormous figures which is provided to you later on in your retirement years. A financial habit definitely worth cultivating in 2019!
- Abstain from procrastination
The effects of chronic procrastination can be harmful to fulfilling your financial aims. How? Delayed savings and investment during early years will constrain your retirement savings. In Charles Dickens words, “Never do tomorrow what you can do today” defines procrastination. Strive to fight this deadly bug when it comes to personal savings.
Here are few tips to help you abstain from procrastination;
- Start saving early. It’s never too late to start.
- Commit to settling your bills on a specific date. This should be way before due dates.
- Reward yourself once you achieve milestones in your financial goals.
Now you have the tools to get started with your savings plan. If you’re to make 2019 a successful financial year, cultivate these personal savings habits. Go for it!