No money No honey

From the previous post I mention to get 3 things in place for you which is the petty cash box, record book and also discipline. I assume that you have all these 3 things with you now. Since you have everything in place for you, we will get started in our savings quest.

When talk about savings, I only identify 2 categories. First category are thrifty and second category are spendthrift. No matter which category you are, the fundamental is still the same which is you want to save money.

Lets start with the fundamental.

Before we could start the fundamental, we need to do 2 things first. 2 things are;

Financial Goals
Your financial goals could be anything such as buying a brand new PSP, buying a mp3 player or it could be anything. When setting your financial goals, do make it realistic and attainable.

Deadline
Every task need a deadline in order to achieve or complete. Same goes for our savings. We do need to set a deadline in order to achieve our financial goals so that we could keep track of our progress. At the same time we could make some adjustment if something went wrong along the way.

After you have set your financial goals and deadline, now we can start our savings quest. I always like to start off with something very fundamental so that it will be easier for everyone to follow. For a start let start to save $1 per day and aim to save $30 by end of the month. In this situation it best to start from the first day of the month.

You must be wondering why did I start off saving $1 per day and not more. The reason simply because I use it as a guideline for us to start. For some can save more than $1 per day and some can't. Whatever is the amount, use it as a benchmark. The lowest you can go is $1. Now once you have set your benchmark, it is time for you to start your daily savings. If any of the days whereby you can save more than the benchmark you set, go ahead to save. 1 thing you need to ensure which is be consistent.

Now what we are looking for a start is

$1 per day x 30 days = $30

We are not doing it for 1 month instead we be doing it every day. What we will be looking in 1 year is

$1 per day x 365 days =$365

Soon you will realise you are cultivating a habit of savings. That is why discipline is important. Consistent plays a part too. On top of that the goals that you set actually motivate you to do savings and in fact encourage you to save more. With that happy savings and will bring you more tips.

Regards,

Sam Salleh