Ask yourself - Are you ready for a financially equipped 2013?

The holiday season made people disburse monetary allotments that sometimes go out of hand. The long year plan of saving, thrift and frugality was thus accumulated to the holiday mentality of “giving and spending”. I am not saying that it is a wrong thing because each and every one of us looks forward to that joy of shopping, wrapping gifts and giving out a little something either monetary or not. Now, the New Year has arrived, aside from wondering when the world will end or what will be the accurate date of the end of the world , one of the most important things that should be tackled every start of the year is how to save money.   The Problem Let’s start with the real issue when it comes to saving. The fact is the majority of individual who started or said they will save end, even before they reach the peak, in short they fail. This is a major problem, because unless people see why this happens; it will be a cycle. Well, as I have observed among me and majority of the people, the main reason why most people fail to save is because they lack the drive to keep even a single penny. If you think, you work your ass out, the income is just sufficient the why do you still fail to manage saving? The answer is Drive. When an individual has a vision, inspiration and commitment to saving, then whatever the amount of the income is, at the end of the year, you will see the result. Whether it is devoted for a self-gift, for future investment, what’s important is the drive that will keep an individual slip out a portion of his or her money and keep it for good.   The Answer So to resolve the main cause of saving failure is to instill the right move from within. The answer lies within yourself; WHY? Why do we need to save? Why do we need to create a budget?, What are our plans for the future that requires us to save today? Ask yourself, what happens in the past that I don’t want to happen today/ in the future? Are there any people that would benefit my savings today? Is there anyone whom I love that I’d like to be comfortable in the future so I need to save today? It won’t matter whether your drive will be personal or for someone else. Find the reason why do you want to save and the will power will change you. The Methods It’s really hard starting to save even if you know why you want to save. If you use the most suitable method for you, you might end up over budgeting or no budget at all, thus no savings. Here are few methods that you can choose from. 1. 50/30/20. Divide your income with these percentages. It is important that you get the 20% first, do not exceed with the 30% and maximize your 50%. A. 20% is automatically your savings. B. 30% is your freedom budget (spend to whatever you like). C. 50% will be the budget for expenses. 2. Money Jars. Not literally jars, but Money jars are a keen way of allocating your money. A. Know your income. B. Determine your priority expenses. C. Create envelopes and label them with your pre determined expenses. D. Assign income percentages to your expenses. E.g., 10% charity, 10 % freedom, 10 % transportation E. When the income arrives, allocate the amount to the right envelopes. Strictly use only the allotted amount for each expense 3. SF or Save first. This method is applicable when your expenses on a daily basis are undetermined or varying. A. It’s more of a preventive method as your first move is to separate a portion of your income for saving first and let the remaining be your spending income. 4. FV. Fixed and Variables. Another organized way of saving is determining your fixed and variable expenses then disseminate your total income. A. Fixed expenses are your monthly expenses. You may include your saving for that. It may be your rent, phone bills, and it will be your obligation to pay it every month. Determine your income and your fixed expenses so that it’ll be easier to determine how much more you can use for the variables. B. Variable expense may change from month to month. It may be available or not in a certain period of time. For example this moths you have to buy toiletries, the next month it’ll be less because there will be remaining supplies left. You may also decide on the variables that you will be using. You may also find your own method when it comes to budget and saving. What’s important is that it’s convenient for you and you will be willing to move on to the next step.   The Devotion The above won’t be of use if one cannot stay or be consistent of what should be done. It takes perseverance; sometimes sacrifice to achieve the above. Once habit is formed, then it won’t be much of a problem to keep doing it. Do not be ashamed of making a list. Think of the end result, you are the one to set that. It will start with the thought, the realization, the start but it won’t be enough. Try to do it at least continually. There will be distractions that may lead you to distraction but you can always go back. Don’t stop definitely; come back eventually. Good luck and I hope these tips will help. Credits : http://goo.gl/AtnhB http://goo.gl/XmGgt

Mark Hugh Neri

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