WAYS TO SOLVE COMPLICATIONS FROM SAVING PROBLEMS | BY @chilaw | 13th November 2021

Hey friends, hope we are all doing great? I am delighted to bring this very post after a long while in the community. There was a need to share with us the topic Ways to solve some of the Saving problems we encounter.

Having known that savings are a key indicator any time we make reference to how one's future should be. This is a major determinant as many have downplayed the essence of savings and toed the lane of extravagance and reckless kind of lifestyle which we know only have a ripple effect in the long run.

Statistics released by the Bankrate Survey gave a great insight into the saving problems and architecture in America. It came out with a recent result that one out of Five Americans are saving nothing on a daily, weekly, and monthly basis whereas 65% of Americans are saving below the recommended 10% income rate as required. They went further to ascertain the real causes of this shortfall and it was observed that 40% are unable to meet up due to incidences of expenditures. Trying to cover up incurred expenses has become a challenge to this group of people.

The ability of individuals to cut down their expenses makes up for the bulk amount set aside for savings. This article would try to demonstrate some of the ways to prone down on expenditures so as to align to that set of people you are participating actively n meeting up with the savings obligation. And this include;

• Making a Budget:

To some making, a budget may be unnecessary as they claim not to have money worries but it is a financial obligation that needed attention for a conscious and intentional way of spending. According to Watson Survey, about 35% are observed to run with a budget, and 50% of this 35% of budgeters have no current or future money worries. It also went further to release a fact that a far number of non-budgeters are observed to be greatly dependent on pay-check days.

But for me, I think making a budget is as essential as having a decent expenditure as this would help track areas with high or overspending with the possible imposition of limits therein. In the same vein, there are smart ways to allot percentages to different areas which may include allocating greater percentages t those Needs, lower percentages to Wants, and at least a minimum of 10% to savings.

• Cutting down on Big & High Income Consumables:

Many people do not really know how to carry out this particular strategy. Instead of seeing cutting down their expenses on that stuff which consumes more of their income, they rather just cut down on any other expenses which are mostly smaller consuming items. These small income consuming items may include the cable charges or relatively cheaper entertainment fees whereas the Whale income consuming items are the Houses, Transportation fees, Foods, Utilities, etc.

Our size of an income should determine the kind of houses to acquire or rent relative to the transportation incurred in carrying out our daily life activities. Also, our mode of feeding and utility services should be in the low so as to reduce expenditures and enhance savings.

• Cutting down of series of Smaller Expenses:

Just as I narrated above about cutting down on the big stuff which largely takes about 65% of our total income earned, so are the smaller stuff which is aggregate of different items but when merged today make up big stuff. There is also a need to trim this smaller unit of items to avoid taking a larger chunk of our earnings. We can institute ways like the 24hrs rule before making purchases. That is, each time we conceive the idea of spending, we can allow this to tarry for at least 24hrs before executing. This would help eliminate spending largely on Wants.

Their other ideas like having a No-Spending challenge or window to see how long you can ensure before spending on both needed and wanted items. The use of coupons and discounted gift cards, free entertainment sources, and eating responsibly than carelessly.

Thank you all, and I do hope i was able to pass some genuine concepts to us.

Written by: @chilaw

Cc: @whitestallion