4 essential skills to win the savings money
Saving is a difficult task for many people, especially those who have not been accustomed to it since childhood or those who are impulsive spenders or have bad financial habits such as waste, and often have no real intention to save. On the other hand, there are people who really want to save money, but they lack saving skills.
The following are four skills that will help you save money in a practical way, and to the extent that you apply these skills, the results will be good, and thus you will be able to achieve your next goals, and you will ensure – with God’s help – a decent financial life away from the need for others, in addition to that the money that you will save will secure you a state of Psychological reassurance and makes you feel safe and stable.
1. Mastering the art of winning
The number one savings skill relates to how well you can earn money. Most people dream of a good job with a reasonable salary, while some choose to trade and seek to earn money, and others start their own businesses.
High income is always associated with hard work, which is a truth that not many people like to hear. The people who make fortunes are often those who work long hours. Of course, hard work does not necessarily guarantee a high income – many workers are stuck in low-paying jobs – but it is impossible to master the art of earning without hard work.
Among the things that lead to an increase in earnings in general, we find the continuation of learning (knowledge and contact), the more you know and experience, the better your income.
2. Expenditure planning
It is easy to set ambitious goals that help you save money, but without following up on your expenses and expenditures, achieving these goals will become very difficult. To make any tangible financial progress, you need to plan the tunnels first.
Planning your expenses and needs increases your ability to achieve a balance between spending and income and gives you a savings margin from your monthly income, which will avoid you falling into financial hardship in the future, and it also opens up opportunities for you to achieve additional income by investing your savings.
3. Rationalizing spending
To save money for the future for certain goals or invest it, you need to rationalize expenses by reducing them. This is done by moving from daily purchase to weekly purchase, as well as rationalizing water and electricity consumption and reducing telephone subscriptions. And the adoption of necessities and needs instead of desires during shopping. Also allocate two lists (one daily and the second monthly) in which you record your expenses and expenditures, as this procedure alone is sufficient to reduce your spending. Finally, be careful of small expenses, because a small leak can sink a large ship!
Investment and saving are closely related. Savings has three pillars:
- Emergency fund: It enables securing emergency expenses (travel, illness, …)
- Savings goals: These are the amounts saved to meet short-term needs (buying a car, marriage, education…)
- Savings for investment: It aims to achieve long-term goals (buying a house, educating children, retirement…)
Who does not want the value of their saved money to grow over time? The money saved with the aim of investing it is the starting point in the world of investment. Investing does not require you to have exceptional economic skills, all you need is to choose the method that suits you to invest your money, and mobilize all your energies to learn this type of investment (for example, reading some investment books, attending some investment courses in stocks, or learning to invest in a specific business project). .
Learning (knowledge), practice (experience), and arming with the element of perseverance. And don’t forget two rules of investing: don’t put all your eggs in one basket, and don’t test the depth of the river with both feet.