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It’s a new year and saving is one of the most crucial routes in your personal finance journey. Saving has a way of making one financially independent. Savings also gives you financial security. In a country with low job immunity, one can lose their job anytime. Saving will help you. Also, it’s advisable to save for rainy days. It’s advisable to have an emergency fund. Saving can even make you enjoy a better life in future.
Many wonder, “How much should I save?” How much will be enough? Will 10% of my earnings be enough to save?
10% isn’t enough; you will need to save at least 20% of your earnings. You can save more than that depending on your source of income or how little your responsibility is.
You can follow what is the 50/30/20 rule of thumb. This is like an easy way to budget your money.
50% of your income should be for your essentials, 30% should be for optional things like hanging out with your friends, buying a new dress or shoe, self-treat, sometimes you have to relax and enjoy the money you’ve worked hard for it (this life is too short abeg, LOL). Then the 20% should be for your savings. You can save more depending on your financial responsibilities and what you want to use the money for.
Some people think saving is not possible because they believe their responsibilities are too much or their salary is not enough to save some cash at all. Some are of the life philosophy that “let’s spend the money we have today another one will come tomorrow”, the YOLO, the “I can’t kill myself” type of people.
People tend to forget that our wants are limitless. No matter what, there is always that one thing you would like to save for. For example, you might want to buy a new car, get a new apartment, build a house, start a new business, or save for your wedding or children’s education. The rationales for saving are just endless. Even if there is nothing to save for, saving for the future isn’t a bad idea; every day will not be rosy. There might be a time things might be down, and maybe one lost a lot of money in a business or a job. Having savings can be a backup plan. Savings can give you that financial freedom and confidence. It is also substantial to have savings for unexpected expenditures.
To become more disciplined with your savings , www.savingsbox.ng offers you a wide range of savings products and features with mind blowing returns and interest rates. It’s also important to note that having a plan or goal will also help faster in saving and savingsbox has just the right target savings plan for you.
Remember saving doesn’t stop you from other responsibilities; it just makes you more cautious in your spending, and as a reward, you get what you desire.