The ability to save is the stepping stone for wealth creation. [Photo: The Star]
Saving is a habit that you can cultivate. It happens when you consistently put money aside. If you earn money every month, then you can save every month.
According to Lillian Mumbi, an investment analyst at Cytonn Investments Management, a saving culture guarantees one a stable future.
In an article published by The Standard, here are ways to grow the balance in your savings account.
1. Start early
Start saving with the little that you get and it will build up with time. Treat savings like a bill you have to pay immediately you get paid.
2. Allow your savings account to rest
Savings are put in an account that you don't use for your day-to-day expenses. Never mix the two. Withdrawing the money without making new deposits is a hindrance to your savings growth and you will earn little or no interest.
3. Get a side hustle
Don't rely on one channel of making an income. You can start a small side business or use your talent to make money.
4. Avoid excessive borrowing
When you borrow in an extravagant way, you burden yourself with monthly repayments that drain your income and leave you with nothing to save.
5. Make sacrifices
Cut some comforts from your life for a while. At the end of the day, the effort will pay off.
6. Avoid plastic money
Using cash automatically makes you spend less than when you are using plastic money. Cash also makes you more likely to stick to your shopping list and resist making impulse purchases.