Career & Finance

How to save money when you are broke

Saving is something that is easier said than done. We all know the benefits of saving and we want to do it. But how can we do it in the face of constant expenses and persistently increasing cost of living which has been rising much faster than our salaries over the last decade.

Tony Robbins reminds us that our minds are powerful tools and whatever we focus on, gets done. So before we get to the actual deed, it is important that we get our minds in the right shape. Get specific about your savings goals and let that be the motivation that keeps you on track.

Start small

Just save something and save that something every week even if it is 20k. Get in the habit of repeatedly saving a fraction of your income into a savings account.

Wondering where the 20k will come from? Take a hard look at how you are spending. Are there some expenses you can cut? Do you need to that weekly pedicure? Can you walk some distance to save on transport fare? Not only is walking good for your wallet but good for your health too.

Financial literacy coach Jacqueline Nuwamanya Bigirwa teaches that everyone should save 10 per cent or more of their salary or wages each month. The goal is to always have between six and nine months of your living expenses saved in a bank account.

Committing to a consistent savings pattern is helpful to ensure that you never fall off the wagon. But if you receive a windfall then certainly putting a chunk of that toward savings can help to accelerate your savings goals.

Share your savings goals with others. Sharing your savings goals can lead to saving more money because you will be accountable to them which will keep you focused.

Save automatically, as much as you can.

Add more to the savings schedule as you earn more or cut back on costs.

Keep your money safe and protected.

Track your spending on an ongoing basis to see where you may be going overboard or can cut back.

Visualize your savings goals. Have something in mind before you start to save so that you stay motivated.