Build Your Financial Age
Building a financial age is very important to your future. Ever notice that there are individuals who work for longer than they should simply to have a nice, juicy retirement account?
Yes.
That is simply because they did not begin to save money at a young age.
This permits you to have a financial age much older than someone who hasn’t started to save. To prevent you from becoming a statistic, please follow these tips:
1. Request to have your savings and checking accounts to be connected or linked through an ATM card.
2. Create 3 savings accounts: the first will be for emergencies only. Emergency does not mean buying the latest iPhone on sale or the Berken bag, it means unforeseeable medical bills, etc; the second account will be for your daily expenses i.e, foods, utility bills and the final account, for investments.
3. Have your ATM card on you only when it is absolutely necessary. like for example, if you are going to make transactions or when you have to take more from your account which you should not do too often. Simply because you will be tempted to take more money for what I call, “nonsense” spending.
4. Whenever you get paid, place your salary in your checking account and only make withdrawals for daily sustainment as often as you get paid. Meaning, if you get paid weekly, then you make weekly withdrawals, if you get paid monthly, then it is monthly withdrawals, etc.
5. Deposit a part of each paycheck into the 1st account. If it is your aim to have 3 months’ worth of living expenses, you can achieve your goal in 30 months by saving 10% of each month’s pay, or in 15 months by saving 20%.
6. Place the rest into the 3rd account including money you get from friends and family for birthdays and holiday bonuses, etc. If you receive a salary increment, put the difference into this particular account.
If for some reason your bank cannot connect all of your accounts, or perhaps, you cannot control your spending, then request to have your salary paid into your savings account, directly.
