It's no secret that discussing finances is often considered taboo. Oftentimes, people quickly become uncomfortable when the topic is brought up. But why is talking about money so awkward for most people?
It's because most people are still afraid to discuss about savings openly for a wide variety of reasons from shame, embarrassment, or simply fear of their financial privacy.
However, there are many reasons why saving (and actively building a savings account) is important, and we think that today is a great opportunity to break the stigma around discussing savings openly. Here's what you need to know about starting to save, several ways to save money, and how Tap can help you in your saving quest.
The stats on talking about money
Discussing finances can be an uncomfortable subject for many people, as revealed by a recent survey. In fact, the survey found that over half of respondents, 56%, consider talking about money a taboo topic. Debt emerged as the most controversial financial topic, with 45% of those surveyed expressing discomfort discussing it.
The survey also highlighted that people are more likely to open up about their finances if others do the same. This means that breaking the taboo around money talk can have a positive impact on our financial well-being. By being more transparent about our saving methods, we can help others learn and achieve their own financial goals.
Below are a few ways to get you started with how to save money more efficiently.
How to get started: start saving money
It's never too late to start your savings journey. Whether you're starting your first job, looking to make a down payment on a house, or you're already retired, setting aside money for savings is an important step in building your wealth. Here are a few simple steps to take and ways to save money.
Establish your savings goals
In order to get started, first calculate how much money you need to save each month to reach your financial goals. This will help you determine how much money you need to set aside each paycheck.
Create a budget
The first step is always the most difficult, but it's important to be honest with yourself about your current situation. Review your finances on a regular basis and consider how much you would like to save as well as what that savings goal entails. Build this savings plan to be realistic, making a savings plan you're never going to stick to is only a waste of your time.
If your monthly bills exceed your income, it might be time to make a budget. Look at what you spend on grocery shopping, auto insurance, energy costs or online shopping and see if your monthly budget has room for some cuts. While homeowners insurance and utility bills can't be neglected, consider if there are cheaper alternatives in your area for the things you can afford to cut on - you never know where you might be able to save some extra dollars.
In doing so you are already taking the first step toward your quest to save money.
See where you can cut spending and save money
Take a closer look at your spending habits. Where are you wasting money? Are you eating out too often? Do you have a lot of expensive subscriptions? Once you identify your problem areas, you can start making changes to better save money.
For example, if you're spending too much on eating out or buying lunch, try cooking at home more often. If you have a lot of subscriptions, see if there are any you can live without and consider canceling an expensive subscription service. There are plenty of ways to save money and build wealth, get creative!
Set up a savings account
Next, you can open a savings account and make sure to deposit money into it regularly. This account should be a separate savings account from your checking account so that you're not tempted to spend the money.
You can opt for a saving account programme which allows you to put money in an account that generates extra cash for you, paid out monthly or yearly. The key in this process is to make sure the money is going into savings before you have a chance to spend it.
Also consider putting unexpected income in these accounts, like a tax refund.
Review and adjust
Finally, in your efforts to save money make sure to review your budget regularly and adjust your savings goals as necessary. By following these simple steps, you can start saving money and building your wealth today.
Don't forget to give yourself some breathing room. It's important to have money set aside in an emergency fund, but that doesn't mean you should never spend any of your savings. Indulge in some of your favorite things every once in a while and appreciate all that you've worked for!
Consider paying off credit card debt and building an emergency fund as equally important to building your savings account. If you're making use of passive income generation you could use these earned funds to pay off one of the two. Savings accounts might sound scary but the truth is they're simple, important, and integral to save money.
Here are some of the best saving tips that we think everyone should know:
- Don't wait to start saving money. The more time you give yourself to spend it the greater the temptation will be. Transferring a fixed percentage of your income into savings accounts as soon as you receive it is an excellent way to make sure you're putting some money away as soon as you get paid.
- If you're always frugal with your money, you'll only be frustrated and won't achieve your savings goals. From time to time, remember to give yourself a little treat!
Saving money is something that everyone has to do, and it can be made easier by doing it with others. No matter your situation, there are probably other people around you who know exactly how you feel and with whom you could share advice that could help you both save money more efficiently.
Open that savings account today and start building a better financial future. Whether you cut your monthly bills to make a down payment or save money for your emergency fund or dream vacation, putting money aside for your future is always a good idea.
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