ONE OF THE essential elements of a healthy self-economy is saving. When, how and what do you need to start saving? Are you saving smart? Find the answers to your queries here.

Don’t we all love spending money to buy things we never knew we needed? Why wouldn’t we,we earned it! But we rarely ever think of the fact that emergency doesn’t wait to strike only when our wallet is full.

Well, I guess you too didn’t when you were buying that extra pair of jeans or the expensive foundation despite your already having two more at home, or when buying a new leather jacket because everyone has seen you in the old one far too many times.

How to start a saving habit?

Now you may well ask, “What? So I shouldn’t even buy something I need?” Nah, I never said that, it is just that you need to buy smart and save some. Yup, the word SAVE that you see often on bank brochures.Savingdoesn’t necessarily mean you have to give up on your basics or even your luxuries . Comb through a few of these tips to get started on saving. 

• Track your spending habits.

• Have goals on spending and saving.

• Have a budget plan with every paycheck—prioritize your basic needs, and save some for rainy days. 

• Stick to your budget, do not waiver!

• You should let yourself splurge once in a while when you reach your goals.

How much should you save?

Unlike in the past, the world now is a very expensive place. Hence, your savings must match the ways of the world. Saving 10% of your income is not enough anymore. You must put aside at least 20 - 25% now. It might seem harsh but if you are not saving for your future, who is? 

There are many perks of saving, few of which are:

• You can earn more while you save, be it from investing in shares, real estate or in banks.

• You are prepared for emergencies that might come your way.

• You are covered when you need to make big purchases like a new car or a new house you had been eyeing for a long time.

• If you are a parent, you could financially help your children when they say they want to go abroad for studies.

• You can protect yourself from loan sharks,sudden increases in interest rates and changes in payback deadlines.

• You can tick off items on your bucket list with an ease of mind.

When is the RIGHT time?

Starting as early as in your 20’s is best because life only gets more complicated and expensive from here.  If you are past your 20s and haven’t started saving then you should start immediately. As the saying goes— Better late than never.

Saving early on also means you make most of the interest rates offered by banks, you are building up a valuable habit, and you will be rolling around in cash when you truly need it.