Account Open Sesame

Hey everyone.

Previously I talk about starting a fundamental saving by saving $1 per day. Then followed by contribute your every coins to your savings. Last post I recommend setting aside 20% of your income for your savings. If you noticed, I mention to jot down or to be exact record all your savings in a notebook or excel worksheet. I also mention that to keep all your money in a petty cash box. For those who have been following my blog, here is the thing that you need to do.

With all the money you save in your petty cash box, deposit it into your new bank account. The reason why I make you deposit it into a bank is because when you save you can earn interest from it too. Before you open a savings account with a bank, I would recommend you go and do some research or window shopping and compare which bank offer a better interest. The bank that give better interest will eventually help to grow your savings.

Once you open a bank account, this is where all your 20% of your income will transfer to and this is where all your money in your petty cash box will go to. I guarantee with you that when you update your account, you will be smiling away cause you will see you have earn extra 'free money'. As I mention before do ensure you are discipline to save money and your actions are always consistent that it had become second nature to you.

Regards,
Sam Salleh

Setting aside 20%

For the last 2 post I have discuss with you about doing a daily savings. For this post I would share with you another saving tips. This time round the amount you will save will be bigger and we will be doing it on monthly basis. The tips is useful for everyone especially those who are in the working force regardless full time or part time. Students are strongly encourage to follow this tips when they going to start their career or part time jobs in the near future.

Every month when we receive our monthly paycheck from our employer, we tend to spend first then we save with the remaining amount. The worst part is we have nothing to save. The problem lies are we are not discipline and we didn't fix the amount to save on monthly basis.

To solve these problems we have to:

1. Discipline ourselves. Change our mindset from spending first and save later to save first and spend later.
2. Decide and fix the amount you want to save on monthly basis.

Now the question is how much are we going to save on monthly basis?

For a start, this is what I always recommend to all my clients to set aside 20% of their salary for their savings. Below is a simple calculations on how much you will save within 1 year.

Monthly salary = $2500

20% of salary = $500

Annual savings $500 x 12 months = $6000 per year.

You may be question yourself what if you can't set aside 20%? You can start maybe 10% or at the very least start with 5%. However as time goes by, you can increase by 5% or 10%.

The main thing you need to be aware is you must be consistent in your monthly savings. At times you can decrease your savings due to some emergency situation but that decrease should be temporary and get back to the normal amount you have been saved after that situation has been resolved.

More tips will be shared in the upcoming post. Do check for more interesting post.

Regards,

Sam Salleh

Never underestimate the power of cents

Hi everyone.

I hope my previous post about saving on daily basis has becoming fun for you because you see your savings keep growing base on your daily record.

In this post, I will share another tips on saving. Before I start, I strongly encourage you to consider to have another record keeping for this. You can have this record on the same book or excel sheet. How you want to organise it, it is entirely up to you.

Usually we spend on daily basis such as buying lunch, taking public transport or anything. After we have spend for the day, we always found remaining coins in our wallet or purse. Typically we will put it somewhere. We do so because we don't see much value in it. Therefore we don't save the coins.

This is not true. Regardless the size or number on that coins, it does carry a value in it. Lets look into this example.

In your wallet, there are few coins found in it.

3 10 cents coins
2 20 cents coins
1 5 cents coins
5 1 cents coins
1 50 cents coins

How much do you have? The answer is $1.30 in total. The value may look small to you but if we save it on daily basis instead of dump it aside, then we see that we have save quite an amount. Let use the example above for a simple calculations.

$1.30 x 30 days = $39

So in 1 month you have save a total of $39 from those coins. How about in 1 year time if we keep practising it on daily basis?

$1.30 x 365 days = $474.50

In 1 year time you will save a total $474.50.

Now do we still want to dump all those coins we have in our wallet? Well what are you waiting for? Start to hunt all your lost coins in your house. If you were walking down the street and saw a coin lying on the floor, pick it up and add to your saving collection too. Happy collecting and saving.

Regards,

Sam Salleh