No Savings? What To Do?
Seven Frugal Living Tips
Having no savings can be stressful and it also can be scary especially, if a major financing obligation comes up or if an unplanned life situation happens.
There can be also several reasons why you don’t have any savings. For instance, you could have a help setback or a financial setback. Or, it could be from a money mistake or poor financial decisions.
However, Now that you are in this stage, it is important to learn the lessons, take yourself out of the situation, and then let go of any negative judgment or shame.
It’s okay, sometimes these happen and we as a human being need constant space to rebuild and reshape our lives. Now take the first step to set the intention, do what you have to do, and assess what led you to that space of not having any savings in your account.
Following are the 7 frugal living tips to lead you to success from where you are right now.
Tip 1. Know where you stand: It means looking at your net worth. When you have so many debts and no savings it means if you run those numbers it only will go negative.
It’s like you are telling your car navigation where you are right now and where your end destination is so that he can map out a plan for you. That’s the same approach that you have to apply to your finances.
Know, what your finances look like now, what you owe, your assets versus your liabilities. Make these points to build your foundational points to create your plan for savings and approach to ramping up your savings.
Tip 2. Assess your lifestyle: Are you extending your lifestyle? Is lifestyle a key player factor for the downsize? The majority of the time as people’s income increases so do people’s expenses.
People buy new cars, they shift to a nicer apartment, and they take expensive vacations and then they find themselves in the space where they spend every single penny they earn and have no savings.
Look for any areas you can cut back. See, if you are extravagantly spending, look for if you can get a cheaper apartment, or you can downsize your car. You can also look for things in your home, or your closet that you can sell and get the money to pay off your debts.
Tip 3. Set clear goals: You have to visualize how much you need to save to run your short-term funds or your long-term funds. Why do you need that money and when?
Having those clear goals will give you the direction and the path to what you need to focus on according to a specific timeline.
This way you will know exactly how much time you’ll need to save and you can break down those numbers into how much you need to keep aside now to save in your new savings account.
Tip 4. Create a Budget: Whenever you are budgeting you also include your savings accounts in your budget list. Put every single saving account on your budget list so that whenever you check your budget you can visualize how much money will go to which account.
Visualizing in any matter helps you create a concrete plan for the future.
Tip 5. Create your emergency fund: The Last thing you want to have to do is to leverage debt to take on even more debt to get out of your financial difficulties or to pay your day-to-day bills.
Try to build your emergency funds. Make an emergency basic funds of $1000. It will cover at least the basic expenses like a plane ticket, a home repair, or a bank deposit.
Create a plan, have the budget for your first $1000. Set aside this money from your savings to build emergency funds so you can fight any unexpected situation It’s always best for you to rely on your monetary funds than on your debts.
Tip 6. Make a plan to pay off your debts: Again keep your repayment accounts in your budget every single month. If possible try to pay off your debt more than the minimum and aggressively focus on getting rid of your debt
This way you can get free out of the debt payments and allocate that money into your savings account. You have to focus on your debt payments because it compounds.
Have the emergency funds first then your repayments funds and aggressively run towards saving more because no matter what if you are saving a minimum, debt will start to eat up your day-to-day money after it eats up all your savings.
Tip 7. It’s okay to start small: It’s always better to start small. That’s how you can get motivated and also be consistent because the amount is not taking out so much from you.
So after you get habituated of saving that small you go for the big challenge slowly.
Be mindful of that small amount. If you can take the small challenge seriously and be consistent with it, it will push you fast to take the next big challenge.
To conclude, as you make savings consistently part of your life it will get easier for you to increase your income and it will teach you to earn more money. Savings grow from small over time. It grows from taking action over time. So don’t discredit saving small. What’s important is you start and save something.
I want to know more from your side, my friends, how do you save? What’s the biggest tip you want to give your fellows to work on it? Please share your saving journey in the comment box.
