When it comes to saving in recent years I will admit that it’s been a bit hard for me, This is because expenses keep piling up and when you have a limited source of income and have to fund all your responsibilities with the limited source of income it becomes hard to put aside some part. This is one of the major reasons why people suffer, especially when they have kids. Well, I have no kids, but a ton of responsibilities, and these responsibilities are keeping me from making the most use of my finances. Although I will admit there have been times when discipline was a major challenge, and it made me not be consistent in saving.
Photo by micheile henderson on Unsplash
Understanding my weaknesses made me start talking to my partner about how we could best manage our finances. It took a lot of trial and error to start getting it right, alongside a whole load of frustration especially when the expenses come in unexpectedly, but we still manage to pull it off. The first thing we did was to set a goal which gave us something to look forward to. I realized I work better when I have something I am looking forward to and it helped. The next thing we did was to take out 10% of our income before spending anything on expenses.
We really wanted to do more than 10%, but the issues that required funding were just too much so we decided to keep things a little simple for now. After that we decided to make sure anything we are saving also produces more money so we put our savings into mutual funds and crypto. For crypto we did not put in much, but for mutual funds we put in much more because it has a better risk management system compared to crypto. We are in the process of achieving our goals and we hope we will be able to achieve them, we understand the importance of saving but most of all our idea is to do so with a definite goal.
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