• Thursday, February 22, 2024
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BusinessDay

If your savings habit is poor, work on it in 2014

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Many people came wondering at the end of this year that they could not make reasonable savings despite that they made so much money, which they could vividly remember. When it was dawn on them that the year is ending with little or nothing to show for it, they could only blame themselves but that would not get them anywhere.

List of expenses, bills and family dependants and others already forgotten, were major impediments to achieving savings target in that year.

Here again, the year has started with those expenses that undermine savings the previous year still here and handy waiting to get help.

As personal finance experts put it, this is a good time for an honest self-analysis: What has your saving habits been like in the past year? If it seems like all the money you make falls straight through your fingers and gets gulped up by bills and other expenses, think hard about a reasonable amount you could start to view as yet another monthly bill.

Denis Nnorom, managing director, Pinnacle Insurance Limited, says savings culture is a personal decision which an individual takes to better his or her future.

He stated that there is nobody who is not under pressure to spend for himself, his family or other relations, but somehow, some way, you must try to put something aside for the rainy day.

According to him, it is only about self-discipline and again, getting a savings plan that would not be tampered with to solve immediate problems.

Dual Citizen in his article on “Savings Culture among Youths” stated that it is not too late to start savings, but you can start today.

He observed that sacrifice is the name of the game. No pain no gain. “If we look deeply and sincerely into our budgets and the kind of lifestyles many of us are living, we will be able to cut off some of the extravagances and put the difference into our savings and come few months down the road, you will look back and be proud of yourself”, he said.

After living in the US for many years, Dual Citizen observed that he could save very little because of pressure from personal expenses, family and relations at home who on regular basis make demands via the telephone even for things that does not make necessity. But, he began to do better when he decided to say no to some of those demands, on the premise that if he had no job those relations could as well do without those demands.

His words, “Way out for me was to learn how to say ‘No’ more than yes when they come with their stories. I weigh what’s more important. For instance, school fees or feeding will come first before ‘Broda’, I want to buy BlackBerry and iphone; can you send me the money? I answer No to such request.

I have set a goal for myself to save more than I spend henceforth. How is that possible? It is called aggressive savings. If I was used to eating two meats before, now I reduce it to one and eat the other the next day and that way I cut cost on food and so I did in other things. Just look into your lifestyle and cut those things you can cut and in few months down the road you will be able to boast of some money in the bank.

“But, don’t forget your family o, if they need serious help please do, but you have to be able to weigh the priorities and if what they are asking for is unreasonable say no politely”, the expert advised.