It’s
a dream for many employees to achieve financial freedom. While most finance
analysis would describe a career path as a hurdle towards achieving financial
freedom. We can’t all resort into being businessman and businesswomen, so how
do we achieve freedom in our finance whilst doing our career jobs.
Saving techniques for Employees
1. PLAY WITH 60/40 RULE
The 60/40 rule is where you use 60% and save 40% and vice versa is true. Play by this rule will insure that you always have something that is saved in your bank account regardless your spending. The money you earn can help you start a business or even invest the money in other things like the stock market or real estate.
2. OPEN SAVING ACCOUNT
There are a lot of banks offering the service of having a saving account, what’s more interesting that they are often offered with interest. Learn to have a different account for saving, this will help you not to spend the money you save, and with the interest in the picture you will be able to save more money and achieve the financial freedom you want.
3.DO NOT SPEND YOUR PAYCHECK BEFORE RECEIVING IT.
This is the code word for debt. Spending your paycheck before receiving it is when you take loans or buying things that you may not even need, promising to pay after receiving your salary. This will set you back from your financial freedom as when you get your salary, you will have to pay debts instead of saving your money.
4. NEVER SPEND MORE THAN WHAT YOU EARN
If it is possible, you are advised to use only 10% of your total income. Since this is highly impossible for most worker at least try to not spend more than what you earn. Cut off things that are not important, minimize your budget for luxury things and live within your budget. By keeping track of you’re spending.
Remember that spending impulses will not help you attain financial freedom.
The art of making saving money is one that needs so much discipline. As an employee the major advantage you have is know how much you earn per day or a month hence helping you to make a clear budget within your means. With patience and discipline you can attain your financial freedom.
➧➧➧➧Written by
Detricia Pamba.*(DL Magazine -August, 2019)