A Different Perspective On Making Savings A Reality
After years of varying financial saving and retirement advice, a group of experts now say that by the time you are 35 years old, your total savings should equate to double your yearly salary. An article published on MarketWatch’s website, written by financial advisors from Fidelity Investments, suggests this as a goal for young people looking to save for the future. The general advice given is that you should save 15-20% of your salary each month.
This new advice equates to saving roughly 15% of your salary, which seems more achievable. However, young people take the statement to heart because it is not a concept that many people can implement.
This advice does not appeal to the average young person who has plans to create a budget and simply benefit from that. The likelihood of the average person having double a yearly salary by the age of 35 is not as plausible as professionals make it out to be. Truth is, people prefer spending their money as and when they want. However, the difficulty in accessing financial assistance is now acting as a proponent to savings. The problem does not lie in your ability to save, but more on your lifestyle aspirations.
Do you wish to remain in a cycle of debt or do you want to enjoy life without financial woe?
A Different Perspective On Making Savings A Reality
Whatever you decide, here are a few tips that are likely to give you a different perspective on backing your life with some savings.
Make Budgeting A Habit – Not A Chore
The irony of money is that no matter how much you have, you still feel you need more. It is also the excuse used for not saving. However, the truth is, most people like the idea of having savings – even if they may not feel it is possible. In reality, it all boils down to your daily actions – and it does not mean you have to sacrifice just to save. In fact, you can have the life you want, going out, Netflix subscription, travel etc as long as you have a budget.
Strangely enough, the word budget is often thought of wrongly and conjures images of restriction. However, once these misconceptions are debunked, you’ll soon notice that’s not the case. A budget liberates you from financial worry, because it’s tailored to your needs. Sure, you might have to limit your Starbucks coffee to thrice a week, but that is still better than nothing.
It’s likely going to be a struggle at first, knowing what needs to go into your budget, but keep at it. Remember, your needs will change and so it’s best to update your budget at least every 3months. Sit down with your money, face your shameful spending habits and soon enough, your relationship with money will change. You’ll see this improvement reflected in your budget and as your spending habits become need purchases instead of wants.
Increase Side Earnings
Having a regular salary is comforting, however, many people find they still need extra income to meet their daily needs. Taking on side ventures can assist you in getting a few extra coins into your savings. These days, it is not hard to find a platform that can bring in residual income as seen by the many rising stars on platforms like Twitch and Youtube. Affiliate marketing is another way people are investing their time. It’s a better way to offer a service without having to acquire space or products.
Big players in the industry include Amazon Associates, Clickbank. Flexoffers and others. However, you aren’t limited to everyday products and can consider creating a casino comparison site similar to gamble.xyz. As you will notice, they don’t limit themselves to simply showcasing casinos, but instead offer reviews, guides and other information that players are seeking. By offering value through industry-relevant information and finding quality products or sites to partner with, earning some side cash can be possible. Savings are a safety net that makes all the difference
Save A Penny To Build A Pound
While anyone looking to save – which should be everyone- the goal should not be to reach the expectations of experts. Instead, it should be to start saving wherever you can. The truth is that more than 60% of millennials have under £1000 of savings. Beating these statistics should be your goal, along with following a long term savings plan. Having double your annual salary by 35 would be ideal, but for those with real lives and unpredictable circumstances, any amount of savings will count in your favour.
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