How to Save Money Through Automation
My No 1 Saving Tip.
How to save money is a skill that is grossly lacking today. But the good news is that it is a skill that can be learnt by anyone who cares. The reason why some people don’t save is not that they don’t want to save. The truth is that there are many things competing for our money nowadays. There is need to buy food, pay house rent and utility bills, just to mention but few. Besides, the prevailing situations facing the millennial age are not helping matters. Some of the salary earners have a load of student loans piled up which they need to pay every month. The rising cost of houses also means higher rent. To crown it all, the monthly salary of some employees can no longer take them home.
So, the question is, how can one still manage to save money with all these challenges highlighted above? Well, this may go beyond just ordinary will power. Just as I mentioned above, some people really want to save but it is only that they can’t make it happen. It is like the saying that the Spirit is willing but the flesh is weak. Nevertheless, you still need to understand that no reason may be strong enough to prevent you from saving money. Because when the needs arise, you will still be the one to find way of looking for the money you need to resolve whatever issue confronting you. It is actually better to save than to wait till an emergency situation arises. Don’t wait till you face an emergency situation before you see the need to save, hence the saying that you should save for raining days.
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If you have been finding it difficult to save, you can leverage on automation. How does automation work? It is very simple. You don’t allow the portion of your salary that you plan to save to get to your hand at all. That is, you instruct your human resources department to pay the amount you want to save into a separate dedicated savings account. This amount will be deducted from your salary just the same way your payroll tax is deducted from source. Since the amount of money the individuals pay as taxes don’t touch their hand, they find it easy to pay. People pay their taxes not because they earn big salary neither is it that the money is enough to meet their needs. Payroll tax is an obligation they need to pay and the system makes it easy to pay. In this same manner, automation will make saving easy for you. You are most likely to spend the cash you have with you no matter how large the amount may be. Some of the impulse purchase people make is because of the immediate access to cash or credit card. If the cash or credit card is not with them, they wouldn’t have made the purchase. And if the purchase is not made, they will still live their normal lives. You can even take it personal. Look at what you have at home presently and consider how many of them you actually put into active use. If you are not using them, this may give you a clue that they are not that important to you. Now, they are just occupying space. Not only that, it is your money that you would have probably saved. So, it doesn’t matter the amount, I will say that everybody has something to save. To make it easy, you can make it a proportion of your salary. For instance, you can instruct your human resources department to be paying ten per cent of your salary into your savings account.
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If you are still thinking that the remaining amount that will be left after deducting your savings may not be enough, you need to consider how you would manage if your salary is slashed by half by your employer. You can even take it to the extreme. That is, what will happen if you are relieved of your job? If you suffer job loss, you will soon realize that you can actually do away with some of the expenses that you consider too important. It is better you deliberately cut certain expenses now and make savings your habit. It may not be easy immediately but very soon, you will get used to it. In conclusion, if you are looking for how to save money even when you don’t earn much salary, I will say that automation is the best way to go.