Carpon
Valued Contributor
Savings as we all know is a cardinal part in the life of an entrepreneur or a business person. But many at times a whole lot of people face problems in being able to save. In this thread we will see the common causes of poor savings and how best to adopt the act of saving.
✓ Lack of good budgeting: A budget is a plan of how an earner will spend his or her income. It is usually prepared before the earned amount is spent. A budget helps you to give priority to your most pressing needs. But a problem faced by many people is the inability to construct good budgets. A good budgets should be able to streamline your expenses and make sure that you spend your income in the right way. And one must ensure that you stick to your budget and not buy off budget.
✓ Impulsive spending: Impulsive spending has to do with spendings that are off budget. For example I drive down to a store with a compiled list of items to buy and then I at some point see other items which are not necessary and we're not part of what I earlier planned to buy and then I go ahead and purchase it. This is purchase due to what my impulse told me and is very bad as far as savings is concerned. Stick to your budget and avoid extravagant purchases.
✓ Accumulation of debt and credit purchases: when you collect items in credit or collect too much of loans, it will come to a time when you will have to pay back. This will usually be when you have money which you should be channelling to your most basic needs and savings account but will end up using them to settle debts and pay for all the items and purchases you made in credit. So therefore, as someone who wants to begin savings, you must desist from the act of collecting items you can't immediately pay for. Wait till you are sure you can pay for it before buying and make sure you avoid accumulation of too much debt on yourself.
✓ Ponzi investments: This basically has to do with engaging in investments that look catchy. Things like cash flow and the likes that will tell you to invest a certain amount and at some later time the month will be sent back to you with up to 100% interest. Though at some point it may be true but most of these schemes are aimed at catching your attention and when your mind is far away from thinking it may crash they will get away with all your funds and you will end up in financial crisis which will give you little or no space at to save. You might not even be able to cater for your immediate needs talk more of thinking about the future and making plans for it by saving.
- Lack of good budgeting
- Impulsive spending
- Over accumulation of debt/ credit purchase
- Ponzi investments
✓ Lack of good budgeting: A budget is a plan of how an earner will spend his or her income. It is usually prepared before the earned amount is spent. A budget helps you to give priority to your most pressing needs. But a problem faced by many people is the inability to construct good budgets. A good budgets should be able to streamline your expenses and make sure that you spend your income in the right way. And one must ensure that you stick to your budget and not buy off budget.
✓ Impulsive spending: Impulsive spending has to do with spendings that are off budget. For example I drive down to a store with a compiled list of items to buy and then I at some point see other items which are not necessary and we're not part of what I earlier planned to buy and then I go ahead and purchase it. This is purchase due to what my impulse told me and is very bad as far as savings is concerned. Stick to your budget and avoid extravagant purchases.
✓ Accumulation of debt and credit purchases: when you collect items in credit or collect too much of loans, it will come to a time when you will have to pay back. This will usually be when you have money which you should be channelling to your most basic needs and savings account but will end up using them to settle debts and pay for all the items and purchases you made in credit. So therefore, as someone who wants to begin savings, you must desist from the act of collecting items you can't immediately pay for. Wait till you are sure you can pay for it before buying and make sure you avoid accumulation of too much debt on yourself.
✓ Ponzi investments: This basically has to do with engaging in investments that look catchy. Things like cash flow and the likes that will tell you to invest a certain amount and at some later time the month will be sent back to you with up to 100% interest. Though at some point it may be true but most of these schemes are aimed at catching your attention and when your mind is far away from thinking it may crash they will get away with all your funds and you will end up in financial crisis which will give you little or no space at to save. You might not even be able to cater for your immediate needs talk more of thinking about the future and making plans for it by saving.
