By Rasheda Khatun Khan - Wealth & Wellness Expert & Spiritual Kinesiology Practitioner. Rasheda is the Founder of Design Your Life Ltd, a Debt Panelist at The National and the author of Millionaire Mindset - 6 Steps To A Wealthy Life. To find out more about Rasheda's work, get in touch at email@example.com and follow @rasheda_khatun on Instagram.
2 minute read
Save, save, save!!!! “We know!!!!!” I hear you say and indeed we do know. WE KNOW how important it is to save, WE KNOW it’s crucial to our future, WE KNOW if we don't save it will impact ourselves and our kids! WE KNOW!!! YET are you saving ? And are you saving as much as you can - really?
Well also know this, you are not alone. In fact according to Gulf News, 85% of UAE residents are either not saving enough or not saving at all! That’s insane, considering the majority of us earn more than we would do back in our home country.
It’s time to change the stats. There is enough information and knowledge out there at your fingertips to know what to do and how to do it, the only thing that remains is coaching your self to do it! You are the only person that can change your financial situation. Coach yourself to get disciplined at savings.
Here are some simple steps you can start with.
1) Know what you are saving for.
Ditch the word savings. Write down all of your goals and their time frames. Pool all of your goals in time frames of up to 5 years, 10 years and 15 years +. These become your 3 saving pots. Just so you know your target amount for each one, calculate roughly, yes just very roughly, how much you will need in each pot to reach each of your goals. Tip; keep each pot to no more than 2 goals. If you have more that's great, just pick the top two and keep the others on the list.
This one step will help you stay disciplined to your saving commitment even when something “more important” comes up.
2) Self impose a tax rate on your income and pay yourself first.
Look the governments are smart. They did it. When they need money they impose taxes… we don't like it but we pay it. The second smart thing they did was introduce a Pay As You Earn system (PAYE). For those of you who have experience paying income tax before, you would know that your tax is paid before you get paid. Now you have to do the same. Pick a %, 5%, 10%, 15% or 20%. Calculate how much that is and start with that. Remember, if the government imposed it right now you would simply just pay it. You would not say, “I can’t afford it so I will not pay it,” You may moan and groan but then you would adjust and pay up. Do it for yourself. Be your own government.
3) Keep your savings in separate accounts.
Based on step two, first set up an auto transfer for the same date every month (the day after you get paid or if you have your own business just pick a date) to go directly into your accounts. If you are just starting out, open 3 basic accounts for each time frame of your saving goals. As the balances start to build you can learn how to start investing wisely. In your mind know exactly what each account is for. Have a name that describes your goals for that account.
4) Cut back on unnecessary stuff!
Go through your monthly expenses. Know exactly where your money goes. Don't get to the end of the month thinking where did all your money go, instead start the month knowing exactly how this is going to go down. You’re here to make money…. I know you are so ask yourself what do I need right now, what can I compromise on and what am I just wasting money on. Simple as stop having that coffee every blooming day! Stop eating out as much as you do! You gotta get tough on yourself. How tough you get with yourself depends on how important your goals are to you. Just do the math, you can calculate how much you actually need to be saving each month to be able to reach your goal and I bet the amount of tax you imposed on yourself is less than that already. So you choose, just decide, stick to it.
5) Earn more.
Easy said than done…? Maybe. Just focus on it and see what manifests. Remember, where focus goes energy flows. The fact is if you want to save or spend more, you need to earn more. So start giving it some thought. Perhaps you can instigate a raise, get more from commissions and sales, create new products and services, sell things online… There are many options and by brainstorming you might just come up with an idea that works for you.
Remember it’s the simple steps that make the biggest difference. Get the core of it right and the rest becomes easier to work out.
Rasheda Khatun Khan ( FPC / CII / Cmap / MDRT )
Wealth & Wellness Expert
Spiritual Kinesiology Practitioner
Rasheda is the Founder of Design Your Life Ltd, a Debt Panelist at The National and the Author of Millionaire Mindset - 6 Steps To A Wealthy Life. To find out more about Rasheda's work, get in touch at firstname.lastname@example.org and follow @rasheda_khatun on Instagram.