How to Start Saving

How to Start Saving

Budgeting - the foundation of saving

Everyone has financial goals, be it buying a home, travelling to a dream destination, or ensuring a comfortable retirement. The first step to achieve these objectives is creating a budget. A budget is a roadmap for your finances, allowing you to see where your money is going and how much you can realistically set aside.

Tips for effective budgeting:

  • Analyse your income and expenses: start by listing all your sources of income. Next, write down all your monthly expenses. This will help you identify where your money is going.

  • Categorise and prioritise: divide your expenses into essentials and non-essentials. Essentials might include rent, utilities, and groceries. Non-essentials could be entertainment, dining out, or shopping sprees.

  • Review and adjust: after a month, review your budget. Are you sticking to it? If not, identify the pitfalls and make necessary adjustments.

Saving - building your financial cushion

Once you've established a budget, the next step is to start saving. It’s advisable to save at least 10% to 15% of your income every month. If that's too steep, start small and gradually increase the amount as your financial situation improves.

Tips for effective saving:

  • Goal setting: whether it’s for a rainy day, a vacation, or retirement, having a clear goal will motivate you to save.

  • Automatic transfers: schedule automatic transfers from your main account to a savings account. This ensures you consistently save before spending on non-essentials.

  • Emergency fund: aim to save three to six months' worth of living expenses. This will serve as a safety net during unexpected financial challenges.

Reduce debt to free yourself from financial burdens

Debt, especially high-interest debt, can impede your saving efforts. It’s essential to prioritise paying off debts to reduce the amount you're paying in interest.

Tips for reducing debt:

  • Prioritise: focus on paying off debts with the highest interest rates first, such as credit card balances. That way you will reduce your debt payments the most.

  • Increase payments: whenever possible, pay more than the minimum amount due. This will help reduce your overall debt faster.

  • Avoid new debt: as you work on clearing existing debts, be cautious about incurring new ones. If you must borrow, ensure it's for essential needs and that you have a clear repayment plan, and if you can, access your earned salary interest-free through Viacurrent instead.

Making it a habit

Financial wellbeing is a journey, not a destination. It requires consistency, dedication, and habit-building.

Here’s how you can make saving a habit:

  • Reminders: schedule monthly or bi-monthly check-ins to review your financial progress.

  • Celebrate small wins: Reached a saving milestone? Celebrate it! This doesn’t mean splurging but recognising and appreciating your efforts.

  • Stay educated: regularly read materials, attend workshops on personal finance and stay on track with Viacurrent’s financial wellness hub (as you’re doing now - good job!). The more you know, the better financial decisions you'll make.

Achieving financial well-being requires commitment and a structured approach. By budgeting, saving, reducing debt, and making it a habit, you are setting the foundation for a secure financial future. And whenever you need to access your earned wage, you can rely on Viacurrent.

© 2023 Viacurrent OÜ. Võta meiega ühendust aadressil

© 2023 Viacurrent OÜ. Võta meiega ühendust aadressil

© 2023 Viacurrent OÜ. Võta meiega
ühendust aadressil