Saving money is literally the best thing you can do to secure your future. It is a major part of your journey to financial freedom because saving is the prerequisite of investment. Interestingly, there are different saving habits and your habit will determine how quickly you are able to build wealth.
People have different opinions about how, when and even where to save money and it is largely based on their upbringing and life experiences. What type of saver are you? Keep reading to find out.
- The “You Only Live Once” Saver: You are also known as the “Zero saver”. You spend your income as soon as you get it. Enjoyment is your priority, in fact, you could use the last money in your account to buy Shawarma (lol). You probably don’t understand the concept of saving or you don’t think you make enough income to save. As a result, you borrow money constantly to take care of your financial obligations. If this is you, you can get your finances on track by first creating a budget. Read more about budgeting here.
- The “I Can’t Kill Myself” Saver: You are also known as the “Inconsistent Saver”. You understand the concept of saving but you do not make a conscious effort to do so. You most likely do not have a budget so you only save what is left after you have taken care of your expenses. You may not be able to handle a financial emergency if it ever arises. If this is you, it is time to start taking your savings seriously. Start by creating a budget and sticking to it. A budget will make you allocate a fixed amount to your savings.
- The “Kolo” saver: A “Kolo” is the local name for a piggy bank. A Kolo is usually the way kids are encouraged to save before they are old enough to own an account. However, a lot of adults still save petty cash using a Kolo. Although this method is effective for people who handle petty cash on a daily or weekly basis, it doesn’t earn you any interest on your savings. There have also been cases where your money is cleverly stolen by the people around you or destroyed by rodents. It is wiser to remove the cash at regular intervals and deposit in your savings account.
- The Serious Saver: You clearly understand the concept of saving and you take it seriously. You set savings goals and achieve them effortlessly. You are disciplined enough to create a budget and stick to it. You probably have an automatic direct deposit into your savings account. You’re doing great, keep it up!
- The Smart Saver: In today’s trendy terms, you could also be called the “Serious Saver Pro Max”. Basically, you’re an improved version of a serious saver. You’re not only consistent with your savings, you actively seek out better interest rates. Why would you choose to earn so little when you could earn much more, right? All savers on Crowdyvest are SMART Savers because they earn high interests on their savings. If you haven’t joined the SMART savers club, what are you waiting for? Start now!