Three simple yet effective habits of the money-savvy

The saving culture is not as fully entrenched in society as it should be and people pay for it

13:34 30 January 2014

A lot of people do not have it in them to save money. This lack of appreciation for the savings culture is epitomised by the global financial crisis that we are in.

 

We spend in a slapdash fashion and show more interest in things we do not need or have money for. With credit cards being used as frequently as opposed to a few years ago, it is no wonder that a lot of us get into credit card debt. 

 

Here is a small explanation on setting a nest egg for the next six months

 

Know how much you earn

This information is visible on your payment slip and your bank statement. This provides you with the necessary information that you can use to craft your budget. It is important to know how much you have in the way of savings after deduction. Impulse spending should also be factored in your expenditures.

 

What are the standard payments you have to make?

You should know how much you have in the form of recurrent expenditure as it impacts on your savings. It is essential that you approach this subject with as much truthfulness you can muster. This step allows you to come up with a minimum allowance.

 

Multiplying everything by six will give you what you need to have in your savings account

After you have done all your calculations for the month multiply everything by six. That is what you should have in your savings account.

 

If most people were to lose their jobs today, then chances are their hands are tied. They would not know what to do next. Finding time for new sources of income is going to be a very major challenge. Online jobs have made it possible for people to get employment even after they lose their cushy job. It is important that one have a back-up and this is where six months savings come in.