Saving Steps For Success 

To achieve the concept of financial freedom is very important to have sufficient savings because these funds will be beneficial in the future. You can take advantage of the auto-debit feature from your bank so that it is always routine to save every month. A minimum of 20% every month should go to savings. Of course, more than 20% every month for savings, would be better, as long as your daily needs can be met.

Guidelines For Saving

Prepare an Emergency Fund

An emergency fund is a must. In the end, you need an emergency fund of three to six months of your income so that would be the final emergency goal. Before you start to save for any long-term bigger goals, first you should save at least $1000 for your emergency fund.

It should be emphasized again, that the concepts of emergency funds and savings are different. Although both are funds that are set aside from the income we receive each month, they both have different goals. Emergency funds are funds that are kept to finance uncertain conditions when and for what use. In other words, emergency funds are used to finance unforeseen conditions such as repairs on your car if it breaks down, finances daily expenses in case of termination of employment, and so on.

Meanwhile, savings funds are funds that are kept to finance conditions that have been clearly defined in advance. Such as savings for retirement, savings for education, savings for home renovations or a downpayment, savings for faster repayment of debt and becoming debt-free, and others.

There is no definite formula for the size of the emergency fund. However, you can refer to the amount 6 times your monthly expenses as a goal for the emergency funds. Also important, separate your emergency fund account from your daily savings and expense account, so you are not tempted to use the collected emergency funds.

Pay Off Debt on Time

Debt is okay as long as you are fully responsible for returning it according to the agreed nominal value. Having accumulated debt will certainly make life feel more difficult and far from financial freedom. So, before you go into debt, set a clear goal for what you owe and adjust it to your financial condition.

Paying debts on time to avoid a bad credit score and pending late payment penalties.

With a simple lifestyle, you can start to save more. Also shopping sparingly, and avoiding debt will get you closer to your financial goal of becoming debt free and finally financially free. Buying less stuff can help you get richer.

By spending less, two things work in your favor. One, you’ll have more money to put aside for your financial freedom. Two, you’ll learn that you need a lot less stuff to survive, which also helps you put aside more money.

Don’t spend money you don’t have to pretend that you have money.

Say goodbye to debt.

Monthly debt payments are the biggest money suck when it comes to saving. Debt robs you of your income! So, it’s about time you get rid of that debt. The fastest way to pay off debt is with the debt snowball method. This is where you pay off your debts in order from smallest to largest. Sounds kind of intense, right? Don’t worry, it’s more about behavior change than numbers. Once your income is freed up, you can finally use it to make progress toward your savings goals.

Start Saving For Retirement

Whether you retire at retirement age or retire early, you’ll still have the same living expenses to cover, but won’t have the same sort of income or earning potential. And, it’s for this reason that planning and saving for your retirement is key to attaining financial freedom in the future.

If you get a head start on saving for your retirement, you’ll allow compound interest to work in your favor, which means you’ll be in a better position to enjoy yourself when you leave the workforce. It’s never too late to begin saving for retirement, but the sooner you begin, the better off you’ll be. 

How to Start Saving Money

You’ll only start saving money when you learn healthy money habits and let your future needs be more important than your current wants. You can stop the cycle of living paycheck to paycheck with the next trick: Make a zero-based budget before the month begins.

A budget is all about being intentional. It helps you create a plan so you can see where your money is going and find out how much you can save each month. When you make a zero-based budget, you’re giving every single dollar a task before you save or spend it. Remember: It doesn’t matter how much money you make, it only matters how you spend and save the money you make.

Need help staying on top of your spending? Download our free budgeting spreadsheet. It’s the best way to keep track of all your expenses.

Create a designated savings account

To save money fast, you need to separate the money you spend on your daily needs from the money you intend to save. This means setting up a designated savings account. 

By doing so, you minimize the risk of you dipping into your savings funds to cover daily expenses. Instead, it encourages you to stick within your day-to-day budget while keeping your savings safe from temptation!

Depending on where you live you have different options but Revolut is a very good option, easy to set up and it has one of the lowest fees offering several advantages.

Another great option for easy control of your finances is Wise where you can also request a Wise Card and use it for your daily spending and benefit from very low fees on transfers.

Practical Ways to Save Money

• Save automatically.
  Setting up automatic savings is the easiest and most effective way to save, and it puts extra cash out of sight and out of mind. Automatic savings means you have a process in place to save at regular intervals, whether that’s monthly, weekly, or daily.
• Instruct your employer to direct a certain amount from your paycheck each pay period and transfer it to a retirement or savings account (or both). Traditionally, you can set this up using your employer’s direct deposit, ask your HR representative for more details and set this up today.
• ‘Start Small. Think Big,’ with a short-term goal.
  People save more successfully when they set short-term goals. For instance, committing to saving $25 a week or a month for 6 months is much more attainable that setting a goal to save $500 a month for a year. Once you reach the short-term goal, you’ll have created a habit of saving you can be proud of! You’ll be able to keep going strong with a new goal.
• Take full advantage of employer matches to your retirement plan.
  Often as an incentive, employers will match a certain amount of what you save in a retirement plan such as a 401(k). If you don’t take full advantage of this match, you’re leaving money on the table.
• Save your windfalls and tax refunds.
  Every time you receive a windfall, such as a work bonus, inheritance, contest winnings, or tax refund, put a portion into your savings account.
• Use the 24-Hour Rule.
  Avoid purchasing expensive or unnecessary items on impulse with a self-imposed 24-hour rule. For any non-essential item, wait 24 hours before purchasing. It’s perfect for online shopping where your items can simply be added to your cart to purchase later.
• Start with a goal of reducing your credit card debt by just $1,000.
  That $1,000 debt reduction will probably save you $150-200 a year in interest, and much more if you’re paying penalty rates of 20-30 percent.
• Cut down on your grocery budget.
  Most people after they do a budget are shocked to find out how much they’re spending at the grocery store each month. It’s so easy to walk through those aisles, grabbing a bag of Oreos here and a few bags of chips there, and then top it off with the fun goodies at the register. But those little purchases add up quite a bit and end up blowing the budget every single month.
• Plan out your meals each week.
  Plan meals and take a good look at what you already have in your pantry before you head to the store. Because why would you want to buy more of what you already have? And if you want to stick to your list leave the kids at home.
• Cancel automatic subscriptions and memberships.
  Chances are, you’re paying for multiple subscriptions like Netflix, Hulu, Spotify, gym memberships, trendy subscription boxes and Amazon Prime. It’s time to cancel any subscriptions you don’t use on the regular. And make sure that you turn off auto-renew when you make a purchase. And for those subscriptions, you do want to keep around, think about sharing memberships with some family or friends. A lot of streaming services, like Netflix and Hulu, let you watch your favorite shows from two or more screens. That way, everyone wins and saves!