It is simple basic steps to save for your future. First, you must know this 4 basic steps :-
- Calculate amount your need in your retirement age.
- Plan how to get the amount to help meet your needs in the future.
- Act to implement your plan.
- Reassess your financial need and progress your plan every year or period
You need to have a financial goal. That’s the important part as you don’t know what you can do in the future. Imagine the worst case scenario in the future. You can’t work all of your life to earn money. Preparing for future financial security can be challenging but it can be done.
Do you have experience started day with $10 in your wallet but back home without a cent? At home, you don’t know where is the $10 gone. Why this happen? It is because you don’t manage your spending. So, after this try record your daily spending. Record every cent you spend and single item you buy.
Nowaday, you can do it by using finance apps . Lifehack.com have given their opinion about 25 app that will save your money . It is such a good article and you will find some of their finance app very useful to help manage our money. If you are conventional guy, you still can use a small notebook (not a computer thing). Write everything and you will find what you’ve spend and you lose. As backup, request receipt for your reference.
After three month, you could find your spending trend. You could learn and analyst how you can save by the record. You also can do next budget to manage your finance properly. If you don’t know how to do budget, you can read my old article about cheap budgeting tools or you can used envelope money budget . It is easy and could help you to save money for your future.
You can start it small by save $1.00 per day and increase it next month. You will get huge amount after that especially if you invest your money properly. Warren Buffet in his famous quote said
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
This quote show that you need to invest for long term and it need to learn properly. Once you’ve tracked your expenses and eliminated unnecessary spending, started your emergency funds. You must know what your , your family need in the future. Write down your financial goals as detail as possible. Prioritise your goals and include the number of years you need to save before get the amount. The more detail in your goal, the easier to develop a specific plan to reach them.
To reach your goal, you need to set short term goals, intermediate term goal and long-term goal. Never keep all your money in one place. Diversify it and invest in many place. Remember, all investment has risk to increase or decrease. Don’t take high risk if you don’t want to get trouble in the future.
Start saving now. The sooner you begin, the sooner you can retire.