Savings culture
Savings culture is the process of keeping aside and preserving funds for future use. Your savings can earn you passive income by investing in money markets, treasury bonds, fixed deposit account and securities. Some of the importance of saving culture are:
- Helps remove the scarcity mentality; “there is not enough”
There is nothing too small to start with and to put this into practice just start saving. Work with the $70 you have (or whatever you have available) and don’t procrastinate with the $7,000 you hope to have one day. This means do not wait to feel you can afford to save – just do it.
After taking this leap of faith you will discover you did not die because you saved. The things that are important went on – rent was paid, You were clothed, you covered your transport costs, you ate food etc.
This is the beginning of instilling confidence that you can do it and overtime it is easier to start increasing the amounts.
If you have struggled with saving, you are better off starting with a small consistent amount and building on it rather than a large amount which you give up on in a month.
2. It is the doorway to wealth creation.
Remember if you are constantly thinking “there is never enough” you will never create wealth. Stop using not knowing where to invest your savings as an excuse not to save.
Many people want to know where to invest but they have never cultivated the discipline of putting money aside. It’s not a must to know precisely where to invest before you start saving, preparation meets opportunity. Simply, even if it’s a Savings Account begin there!!!!
3. Savings culture allows you to put things into perspective.
You need to rein on your expenses and savings. A good example is refurbishing your habitable house on debt more important than doing an activity that will add value to your savings
Also read: Steps in developing saving culture
4. A culture of saving helps you start to understanding the value of money thus taming the beast called “instant gratification”.
Before spending any coin, you are very much aware about the choices you are making. This makes you to be in control of how you save and spend.
5. Savings culture has a positive effect on not just you but generations to come- Children and children children.
Children best learn through observation and they adopt that till they are old. If savings culture is nurtured since young age, they will teach their children the same and that becomes a legacy to the family.
6. Saving goal setting
Setting realistic saving goal makes one to be focused on the prize. This makes one to be disciplined with expenditure verses savings.