High savings on low pay? Why not!
This is an article ‘High savings on low pay? Why not!’ by Marc Primo
Saving money fast when you're on a tight budget may seem impossible. Not to mention that today's economy quickly depreciates the value of the money we put in our piggy banks. The bad news is that the projected outcome based on the baseline scenario is that the worldwide inflation rate is expected to rise to 6.5% in 2023. The silver lining, however, is a subsequent decline to 4.5% in 2024.
Saving money on a low budget is still absolutely achievable. By adopting the proper saving techniques, you can shift your mindset towards better financial management for the long term while increasing the money you can save over time.
No one ever said that they were fine being broke. While many may believe that money makes the world go round, everyone needs to know that it is more like a physical tool with a value that enables us to get the things we need and want.
The more we can strive to keep some of our hard-earned income aside, the less chance we end up penniless and opting to borrow on loans, which can eventually bury us deeper into debt.
It is a pretty simple concept, even for a five-year-old.
But what many are left wondering is: how can the average earner increase the money he saves despite the state of the economy right now?
Don’t let the skepticism sink in just yet. Read on because these tips could help.
A review of the current numbers
With inflation and high prices all around, 77% of working people are convinced that it will be difficult to save this 2023. The past year's inflation has drained most Americans' pandemic savings. The amount of income left over after taxes and expenses, known as the personal savings rate, has also decreased since its March 2021 high of 26.3%. The most recent data from the Bureau of Economic Analysis shows it dropped to a record low of 2.3% in October, not seen since July 2005.
However, consumers seek to regain control of their finances regardless of rising prices and sudden economic quagmires. A recent survey by the Bank of America found that 63% of Americans have set savings targets for 2023. Saving more money was the respondents' most common financial resolution for the New Year, with 44% intending to boost their savings.
If you plan to save more this year, here are some tips you might want to check to get a good jumpstart even during difficult times:
Automate the way you save
People who want to save more from a not-so-generous income can benefit from setting up auto payments and deposits on their smartphones. Nowadays, the way we use money is much easier, with many financial technology innovations relying on things like blockchain, e-banking, or e-commerce.
One of the most preferred methods for individuals with limited funds to quickly accumulate savings involves redirecting a portion of one's income received through automatic deposits into a separate savings or investment account. This way, one can be free to determine the amount to transfer, no matter how big or small. Even a modest $10 contribution per paycheck can accumulate over time. Because the funds never reach a checking account, it's easy to forget they exist and continue to increase the savings account.
On the other hand, the problem with manually transferring funds seems less effective as an automated process because there's a higher chance of forgetting to allocate some savings amount or failing to follow through with your goals.
Stay healthy and save more
Fewer health worries mean more savings. Living a healthy lifestyle can have numerous benefits aside from living a longer life, including saving you a significant amount of money as time passes.
Have you ever wondered why most health insurance companies refrain from signing up people of age or with comorbidities? Because health and insurance are undoubtedly treated as a business, and yours is directly linked to how much money you can save, earn, or accumulate. Taking care of yourself, especially as you age, can minimize the risk of medical conditions and illnesses that can be both physically and financially draining. Add to that better chances to secure health insurance.
Consider these numbers as an example. By eliminating daily spending of $10 for cigarettes or junk food, you can save a significant $3,650 per year. That exact figure can eventually add up even further with interest if you save money correctly.
But that's just the tip of the iceberg when saving money by being healthy. Best of all, you can experience long-term benefits that can significantly impact your overall quality of life. The Centers for Disease Control recently reported that a modest 10% weight loss for an obese individual could lead to lifetime medical cost savings of $2,200 to $5,300.
Prioritizing your health habits, performing regular exercise, observing a balanced diet, and taking sufficient rest can save you from unnecessary hospital costs.
Saving money is all about discipline
We know you've heard it a thousand times before, but there's a reason why you have to give this particular statement a second or third thought.
Saving money seems like a daunting task, especially when you live from paycheck to paycheck. However, everything is achievable with the right mindset and saving techniques. By prioritizing your health and automating your savings, you can take control of your finances and increase your savings over time.
One good way to do that is by collecting your spare coins in a jar at home and then taking them to a coin counter to turn them into cash. You can use the amount to add to your savings or something you've wanted to buy. Remember, every penny counts! Even small contributions can accumulate for long-term financial plans. That's how successful businesses actually grow.
As patience is indeed a virtue when you're saving money, you get more leverage to take on the looming challenges of rising prices and economic uncertainty. When you learn to turn away from instant gratification, especially these days, you can take control of your finances and work towards achieving your financial goals in no time.
So, why not start today?
By taking these small and simple steps, you can save more and live a happier, healthier, and more financially secure life.
Learn more money-saving tips and potential business ventures at www.marcprimo.io.