Pay Yourself First:Learn How To Save More Money

Are You looking to improve your Financial savings?

You want to be able to save more but you are mad and frustrated because you don’t just seem to understand how your hard earned money goes down the drain. You really want to save part of your income but your bills and upkeep takes it all before you say “Ba-da boom”. There is a solution to saving more money from your earnings and it is a very simple thing to do-Pay yourself first. Why you ask? because it is the simplest and best way to save more; give it a trial, you won’t be disappointed.

Pay Yourself First: A Simple Task

pay yourself first when you receive your salary

For the sake of simplicity, it requires you to cut off a certain percentage of your income and keep it in a piggy-bank, savings account or tie it up in a good investment or wherever you like to keep your money, before you begin to settle your debts and going on a spending spree.

Simply put, you put the cut money away first and then you make do( or live off) the rest.

Now:

This is not usually convenient and does not come easy. In fact, most people do it the other way round; first, they pay their bills, settle their debts and then move on to fulfill their needs leaving them with barely enough to save.

This approach is problematic because human needs are insatiable. You still wouldn’t be able to satisfy every of your needs if given ten times your earnings a month. There will always be new needs to squander money upon as old ones are satisfied- this exhaust your money in no time.

So instead of worrying about your needs, why not pay yourself first and then worry about your need later.

Benefits You Enjoy When You Pay Yourself

How to earn more by saving

You Will Grow And Cultivate The Habit Of Living On Less

Assuming your income is N100,000 and you then decide to save 20% of it. That will be 20,000. With determination and discipline, you should be able to survive on the remaining N80,000 for the rest of the month.

Now:

The great benefit of living on less is that you have more control over your finances and your life as a person. Frequent practice of living on less helps you differentiate between what you really need and what you want. This is the ultimate goal of living on less with expense control.

It Helps You Save More To Grow A Fat Savings Account Balance

This is the major motivation behind paying yourself in the first place right? To have more money in your nest.

Following the example above with consistency in savings, you will be able to save N240,000. That could be used to buy shares or invest in small business with good revenue.

You Will Be Able To Invest More

With a large savings account, it is only natural that you begin to look at business with a great potentials to generate a passive income.

Most people do not invest because they have little to invest and this puts them off whenever an investment opportunity comes up.

This is not to say that investing with little income is not possible; a larger savings pool gives you more opportunity to increase your investment opportunities and even more profits.

You Will Be Able To Make Large Purchases’

As we grow older, we begin to re-arrange priorities paying more attention to the ones that will provide us with luxury and comfort. A house with furniture inclusive to live in, a car and marriage might be at the top of your to-do-list. Paying yourself makes it super easy to check these things.

CONTINUE READING:

EDITORS SOURCE: https://www.makemoney2000.com/pay-yourself-first-learn-to-save-more/

New Member Asked on November 30, 2017 in Finance.
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3 Answer(s)

Very nice write up. Am sure this would help many.

Expert Consultant Answered on December 1, 2017.
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It is usually easy to just saving.

First you need to determine your objective and purpose for saving,  Do you want to save to purchase an item or car or build a house?

You should have an amount of money in mind that will enable you achieve the objective

You of course know your income level and how regular your income comes i,e, monthly, bi-monthly, weekly etc.

You should determine what level of expenditure you make monthly or occasionally. You may have to review your expenses to remove unnecessar spending.

You divide what is left by the particular number of months or years. This will give you the amount to save regularly to achieve your purpose for saving.

If it is N1000 monthly for example that will enable you achieve your objective, then you must deduct the amount first before you start spending.

You can save it in a bank or create a mobile money wallet and ensure you save the amount regularly.

Sometimes some people are not disciplined enough to save consistently. I will advise you join a group. a thrift association or a a financial  co-operative     society. this will make you save mandatorily

New Member Answered on December 3, 2017.
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very nice contribution you have there.

Expert Consultant Answered on December 3, 2017.
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