Saving is a noble act that we can do for ourselves to secure our future. Though most of us have the desire to save, life and the demands that come with it can be quite limiting. Unemployment, hospital bills, school fees, rent, or even a pandemic often subject us to unprecedented pressures.

The happenings around your life, however, should not deter an individual’s willingness to save. Even if you can only save a meager amount, always remember that any penny saved can go a long way into getting that dream house. This is one lesson I learned early in my life from my father, who only had very little, but his accomplishment showed otherwise.

Lack of saving, on the contrary, casts doubt on the future. Hence, anxiety, frustrations, and depression can lead us to an early grave. Here are my top five tips that could help anyone looking to secure his or her financial future.

Always Have a Budget

Budgeting is the act of comparing expenses to income. I always have to pay attention to my earnings and ensure that I spend within my means.

For me, I go to great lengths to ensure that I capture all my sources, considering that I am a jack of all trades who hardly turns down any opportunity to add an extra coin to my wallet. This helps in determining how the earnings will be utilized.

I can create short-term forecasts like weekly or monthly. I can design a long-term forecast, such as yearly, and break it down into smaller portions.

Open a Savings Account

If I walk into any commercial bank today, I’m sure to find a savings account. Banks empower their customers to embrace a savings culture, going to great lengths to offer some rewarding deals.

Having opened some savings account two decades ago, I know the importance of operating these accounts. For instance, I cannot make a withdrawal during any other financial emergency. Plus having a savings account increases your chances of getting wealthier in the future, especially if you have proper financial planning and strategies in place.

Also, I have heard that a permanent life insurance coverage offered by companies such as the ones found on Life cover quotes (and similar websites) works much like a savings account. As with a savings account, you can access the cash accumulated later in life to spend as you wish, while your beneficiaries will also receive financial protection upon your passing. Sounds like you could free two birds with one stone, doesn’t it?

Focus On Needs, Not Wants

This is where the rubber meets the road. Sometimes, the only thing preventing us from reaching our savings objective is the lack of a blueprint. Perhaps you can take a look at these 7 Smart Ways to Protect Your Familys Financial Future, to get some inspiration to take the necessary steps to develop the habit of saving.

Also, automatic subscriptions, impulse buying, and eating at that expensive restaurant at work do not sound like needs; but rather wants. If you and your family have a penchant for arranging vacations every year, then you may have secured a timeshare at some point in your life. Well, when it’s time to tighten the belt and focus on savings, then it might be time to get rid of vacation village timeshare or other travel expenses that you had in your books. It is paramount to check on such things that are nice but not helpful in the long run.

I decided to live a frugal life, where I only spend on what is deemed essential. Instead of running to buy the latest Arsenal Jersey from that extra income, I would rather have that money in my account.

Set Goals and Smash Them

Anything that we have never done before can be quite daunting. Saving is not divergent, and I can attest it took some rather discipline to hack it.

However, a journey of a thousand miles always starts with one step. Focus on beginning small and progress to higher limits.

Let us say I earn $1000 per month, and my total expenses are $990. I can start saving the extra $10 per month as I look for ways to cut down on expenses. I can also increase my income and maintain the same level of costs.

Pay off Credit

I can not emphasize this enough. It is advisable to clear credit as soon as possible. The idea is to avoid credit at all costs.

With a credit card, I will buy liabilities such as a car whose value depreciates. The interest on the credit is appreciating. Such purchases injure savings. The extra money paid on the item as interest can be channeled to a savings account or invested. I can later buy the item in cash if it is necessary.

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