Nature has a lot to offer, and humans do take away a lot from it, learning from things around us and implementing it into our daily lives. Many animals showcase traits, traits which we have been replicating into our lives and reaping benefits from them. For instance, elephants teach us how to stick around in a family; bears teach us how to prepare for phases like hibernation; and likewise, squirrels teach us the importance of shrewdly saving little treasures during the phase of abundance so that we can draw them during lean phases of need.
It is indeed a great habit and a widely recommended practice, especially for the investment front. Saving away incomes in smaller chunks periodically allow us to build our own contingency funds which we can heavily rely upon during phases of money distress when unexpected events or loss of income hamper our lives. Medical contingencies, rising costs of living, and unplanned expenses are some of the leading factors that can cause bankruptcy or financial strain. Hence, it is important to prepare for the future while we still have access to resources. In this article, we learn how some squirrel saving ideas can help us ease out money stress.
- Maintain a back-up savings account
You may already have a bank account which gets credited with your monthly income. While there’s no harm in having only one savings account, having two can be rewarding. You can compare savings products to see which one is best for you. Each month, draw a certain amount of money and deposit it in a separate account, the back-up account which you have to resolve not to use unless absolutely required. You’ll be surprised to see that once you start putting away a small amount from your main account, you’ll find a reduced amount of cash at your disposal for casual expenses. This way, you can restrict yourself from overspending.
- Distinguish between Needs and Desires
We all want to own luxury items and indulge ourselves in those luxury experiences, don’t we? But if you start distinguishing between expenses derived from needs and desires, you can refrain from indulging in avoidable expenditures. Follow a minimalistic approach, and you’ll gradually find yourself better poised in terms of cash liquidity.
- Find alternatives
According to Erik H. Gordon, you can not only save money from your income; but from your expenses as well. Find cheaper alternatives to your regular car insurance; there are many companies which are offering the same services at a lower cost. Compare the prices before making your purchases; make lesser visits to fine dining restaurants; indulge in a little bit of bargaining; all of this helps in saving smaller chunks of money we may never have considered before
- Take up Systematic Investment Plans
If you want to set aside a good chunk of money for a significant event that is expected to happen in a few years, it is not mandatory to set aside all of that time right away. You can take up a systematic investment plan or a laddering investment approach – invest small amounts of money periodically into mutual funds or other securities, and you’ll reach your goal when the time comes. For instance, saving $100 every month for five years will give you a capital pool close to $10,000 at the end of the term. While $100 a month may not seem to be too taxing on the pocket, setting aside $10,000 upfront can be a challenge.
- Pay Down Your Debts
It is a common perception that saving and investing money is the only form of earning. What people don’t realize is that it helps them earn more if they pay down their debts first, and then look forward to investing. For instance, imagine you have an outstanding credit of $5,000 on your credit card with a 20%+ APR. There is practically no safe investment which can allow you to earn more than 20% APR on your deposits. Thus, you may be earning a good amount of money in the form of dividends or interest, but are you making more money than you are spending on interests for your debt?
- Lock-in Your Funds
Look to invest in schemes and deposits that require a lock-up of your deposits for a certain amount of time. Less money at your disposal, lessen the urge to squander it!
