Saving up for a rainy day has always been a challenge to do. But there are a lot of tips in saving and plenty pieces of advice out there that should make it easier to undertake. Putting aside a part of our earnings so we have something to pull-out of our pockets in times of need is the basic idea. This serves as a safety cushion during emergencies.
It is a challenge for a lot of people mostly because of the attitude more than the amount. Putting aside savings could start with any amount just to get started. You should get used to the routine to be successful in saving. It also helps that you already have a goal in mind on why you are saving. It could be increasing your retirement fund, padding up your emergency fund or even saving for a mobile device.
Saving through technology
Aside from physically putting aside money in a bank, technology has allowed us to save up on a few areas as well. Advances in technology has paved the way for smarter use of the dollar. There are existing inventions and modern applications that can help us increase our savings.
Learnvest shared some ways to use technology for our advantage. There are opportunities out there to maximize technology in order for us to increase our savings.
It is the day and age of mobile devices. Gone are the days when we idly sit by the phone waiting for a phone call from a friend to know where to meet up. It also used to be a tedious task to tell 20 people where the party is if you had to make phone calls to each one of them.
Mobile phones has disconnected us from our landlines and gave us mobility. It served not only as a calling device but taken on the communication and socialization to a different level. It is no longer just a passive receiver and dispatcher of our calls. Technology has brought us smartphones.
Communicating with 20 people is easier now with just a text message. Talking to more than one people is easier as well with conference call. But all these are paid services. Whenever you send out an sms message or make a call, it reflects on your bill and they easily pile up because of the convenience of using the service.
There are Voice over Internet Protocol (VoIP) services we can use to lower down our monthly bill. Using internet connection with which most smartphones comes equip with, we can use skype or viber or other applications to call and send a message for free. As long as the receiving party has the same application, you can communicate for free.
Using internet enabled smartphone, you can freely talk and message your friends and it will not add up to your bill
As most devices are dependent on internet connection, you do not have to apply for a connection for each device. Let’s say you have a mobile phone, a tablet and a laptop – you do not need to have 3 internet connection for each device. You can tether the internet of one device to share the connection with the other gadgets. Tethering is the ability to convert the internet connection of one device and share it through a wifi connection for the others.
This saves you precious dollars in applying for a connection or even buying internet cards. Saving the money that was supposed to be used for internet connection can now be part of your savings account.
We used to have photo albums and cassette tapes of our precious photos and music interest. Now, there are digital files of all these saved up either in our mobile phones, tablets or desktops. As months go by, we add on to those files increasing the need for storage space. This is similar to having a lot of photo albums to store actual photos.
The problem sometimes is that one photo is in one device and another photo is in the other device. We then buy a hard disk to store all our files in one central location. This is useful as a back-up but bulky to carry. This is where online file storage and sharing comes in.
Dropbox is one perfect example of such technology that can help us in our saving endeavors. It virtually gives us a space where we can put in all our files without having to carry a hard disk around. What is even more better is that you can access the files with any of your devices saving you time and energy in saving, filing and locating the files.
Compact fluorescent lights or CLF is better than using a standard incandescent light bulb. It might seem like a small part but it is actually a thrifty money saving tip. The idea behind using CLFs is the fact that it can outlast a standard bulb ten times over and using about 30% less energy. This can be a significant amount in the future.
Saving to build wealth
Technological advances are making our lives easier by the minute. It is connecting us much faster and quicker than ever before. It allow us as well to find creative ways to save up and build up our wealth. As Businessinsider.com shares, there are some habits that will make wealth building a lot easier.
- Anonymous Rich Person. As most people would associate the wealthy with big yachts and shiny cars, most millionaires live a frugal lifestyle. As much as saving can save your life down the line when you need the money the most, frugality is a nice option as well.
- Pay Yourself First. Reverse the attitude of paying the bills first before saving up money. Reward yourself by putting money into the savings first before anything else. This forces you to save up on expenses rather than cutting down on your savings.
- Goal Setting. Having a target makes your efforts quantifiable. This allows you to check your progress and see how far you have gone or how far along you still need to go. This is helpful in setting your eyes on the ball and making sure you succeed in your goal.
- Increase Earnings. There are ways to maximize your current income to suit your lifestyle. But one approach to saving and building your wealth much faster is adding extra sources of income. Some would take on a second job while others explore a side business. The latter usually works when you venture into something you love doing. Think of a hobby you can turn into a business venture.
- Tracking Money. Not a lot of people practices this attitude. As important as it is to increase your earnings, you need to track as well the expenses. You can be earning a lot but spending a lot more and this will get you in debt. Having a method to track your income and expenses will guide you in knowing where you can make adjustments to increase your savings.
- Debt Payment. Though regular payment on debt shows a positive effect on your credit score, it is better to have more money for saving purposes rather than debt payments. Pay off your debt and use the money to put into your savings. One advantage of this is preventing the cycle of paying down debt so you can borrow for life emergencies resulting in paying more debt. This gets you deeper in a financial bind.
Combining the positive uses of technology and simple tips in building wealth proves beneficial in saving for the future. It is better to have money in the bank for your use in the future rather than borrowing money from the bank.