Photo By Staff Sgt. Isaiah Soliz | Phillip Chang, Military & Family Readiness Center flight chief, works in his office at...... read more read more
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KUNSAN AIR BASE, Republic of Korea -- Military & Family Readiness Center (M&FRC).
Spending money you’ve earned feels easy compared to putting it somewhere for future use. Expenses always seem to pop up every time you have some extra cash. If you’ve been struggling with saving money, here are some tips for you.
Savings refers to money you put aside from your income to spend later. There are many reasons why you may want to set a savings goal: retirement, purchasing a home, new car, grand vacation, unforeseen medical expenses, and much more. There are also numerous options available to save money: a savings account, investment fund, pension account, and even cash money.
If you want to nurture a savings habit, the first thing you need to do is spend less. The difference between your monthly income and expenses will help you realize where you have extra money. Also, you can try to find alternative sources of income to increase your earnings, but make sure that your spending remains constant. The concept of saving money is not difficult. However, that skill requires some basic knowledge and understanding. Your local Financial Readiness Program will provide helpful tips to make money saving easy.
Set your saving goal: Before you start your savings journey, it is ideal to have a purpose for what you are saving. A clear purpose will act as an incentive to help you keep saving until you accomplish your goal. You cannot just save aimlessly. Saving money can be a rigorous process, especially for those who are not accustomed to the practice of managing money. It is crucial that you know the reasons why you are saving, and how long you need to save. An example of a savings goal is to say, “I will be allocating 15% of my income to Thrift Savings Plan (TSP) account for my retirement.” This means that no matter how much you earn, 15% of your income will go to your TSP account for retirement.
Prioritizing saving: If you do not make saving a priority and a recurring habit, the process tends to fall behind. Adopt the “pay yourself first” mindset! Be patient; accumulating money takes time. Everyone’s income and knowledge are different, so be happy with any progress and motivate yourself. Sometimes, we simply just do not make enough. That is okay, as it will not be forever. In a situation like this, look into making sacrifices and cut out any unnecessary expenses. Whether you save $10 per month or $1,000 per month, the progress of altering your mindset to better your financial security is what matters. The hardest part of saving is starting, but it will eventually become a habit. It is enjoyable to watch your account balance grow. You will feel closer to your goals, gain confidence, and new opportunities in life will open up!
Tracking your spending: Have you ever caught yourself saying, “I need to start tracking money,” then never actually doing it? You must know where your money is going, otherwise saving may become challenging.
Change your mindset and lifestyle: When it comes to saving, your mindset is a vital factor. You must be realistic about what you can afford. Comparison is the thief of joy; do not compare what others have. Focus on your situation! Even high-income earners may find it difficult to save with lifestyle inflation. Just because you can afford it now, does not mean you should spend the money. If you get a raise, save the extra income. There is no issue with spending more if you make more, just be sure to budget your money first. Always leverage the purchase between “wants and needs”. Imagine how much you could save if you did not spend your extra income on unnecessary things, especially if they are just for the purpose of getting attention.
You have the ability to take charge of your finances and be proactive instead of letting life happen to you. We have provided you with information to take charge, get motivated, and start making changes. Even if they are small changes, taking that first step is the hardest.
Why is it difficult to save and budget money? Although saving is one principle that is healthy for our financial future, it requires a mindset change. We all have a different approach to our personal finances, and it is crucial that we do what works best for us. It takes time to build wealth, and it is not always easy to have the self-control to avoid spending your savings. You may not be familiar with everything. However, use the tools and strategies we have provided and always strive to educate yourself and learn new ways to save. For more information or to schedule an appointment with a financial counselor (a free service), please call the Kunsan Air Base Military & Family Readiness Center. Located in Building 755, the hours of operation are Monday through Friday from 8am to 5pm. Please note that we are closed on Federal Holidays.
| Date Taken: | 09.08.2022 |
| Date Posted: | 09.08.2022 04:18 |
| Story ID: | 428792 |
| Location: | KUNSAN AIR BASE, JEONRABUGDO [CHOLLABUK-DO], KR |
| Web Views: | 115 |
| Downloads: | 0 |
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