3 Tips To Jumpstart Your Savings

A year ago, the whole world was shaken by a deadly virus. And while it put everyone’s health at risk, many aspects of our lives have been massively affected — our social life, our sanity, and our finances. People all around the globe have been jobless and even established businesses have shut down. One year after the pandemic, here we are, still too far from the normal world that we know. We are all experiencing the negative effects of the pandemic but I feel lucky that I am able to survive these challenges. 

I have been working from home since 2016 and I know that employers can just end up your contract in a snap of a finger that's why I learned to save up. If there is anything that this pandemic has taught me, it's the importance of having emergency funds. We have been taught to be thrifty and to spend only on things that are important but let’s admit it, it’s tempting to buy things especially with so many good deals online. 

Now that we are still experiencing economic challenges brought about by the global health issue, I’m sure that people are relying heavily on their savings. Financial advisors say that you need to have at least six months' worth of savings to make sure you are prepared for anything that will happen that will affect your capacity to produce money. But where do you start?  If you haven’t started yet, here are 3 tips on how you can start saving up.

Identify needs versus wants
List down all things that you need to buy and the bills you need to pay. As soon as you receive your salary, pay what needs to be paid like house rent, electricity, water, tuition, insurance and buy what you need like food. If you have extra, put this in your savings. It will also not hurt to reward yourself once in a while and buy yourself something you really like. Just keep in mind that needs should come first and wants can come later. 

Spend within your means 
Know your budget and don’t go broke just to keep up with a lifestyle that you can’t afford. If your money can’t afford luxury brands, then go for affordable brands that are within your budget. 

Have a savings goal
In whatever you do, be it career or personal life, you need to have a clear goal, and saving up is no different. By saving up or investing, the potential to grow your money becomes higher. To get an idea of how big your money can grow in a given timeframe, you can use an online financial calculator. 

Calculator.me offers responsive calculators that can be used on desktops, laptops, mobile phones, and tablets. Seeing the potential growth of your money will encourage you to save up. And once you have savings, you will have an emergency fund that you can use for unexpected circumstances just like the pandemic that we have now.

Now that we have listed these tips, it's time to take action and start saving up!