Can’t wait to start saving but not sure how to master it? We have introduced the 50/30/20 golden rule – a must have item for the newbies. So today, we are going to explore more on those saving alternatives.
While we may have different reasons for saving e.g. retirement, or simply just for keeping an eye on your expenses, every single goal is equally important. As they say, “No dream is too big, and no dreamer is too small.” Apart from the 50/30/20 rule and the envelope budgeting method that we have reposted before, you may also try to allocate a proportion of your salary that goes into your savings, while spending the remainder. This saving rationale is the opposite of those we just mentioned, but it makes sure that we are making progress in achieving our goals.
There could be different criteria that weigh various factors which we emphasize on. For example, you might not be a fan of financial management apps if you hate to record every detail of your spending. In contrast, the 50/30/20 rule would be more approachable and convenient, where you just have to divide your salary once a month, and that will declutter your days in that month afterward! However, this method lacks flexibility as you might need to have a lump sum of cash ready whenever events that are beyond your control happen. On the other hand, the envelope budgeting method might seem easy-breezy, the fact that you have to take your cash from the ATM every month makes it difficult to sustain, both in terms of saving the environment and making it your habit.
Bear in mind that it doesn’t matter which method you go for, but how you are making progress out of it. Make sure you keep track of your spending, then you are already halfway through your saving journey!