For most people, getting to the magical 7-digit mark on their bank account is a long-shot. You start thinking about your personal expenses, outstanding payments, monthly rental fees, and you begin to feel disheartened and demoralised. But in reality, hitting a million in your bank account is not as impossible as most people think. You just need the drive and discipline to get to that point. Develop a solid plan and see it through. Having a wealth manager software can certainly help, but there are a few practical tips to help you save up, so you have money to splurge in your retirement:
- Start saving early
According to studies, millennials in the United States are spending approximately $2,900 on food orders. This is expenditure that can be reduced significantly through thriftier practices such as preparing fresh food at home instead of ordering out. Shaving portions from your daily expenses can help you slowly build your bank account. You can input your savings into your bank account or into an insurance plan, so you can grow your financial wealth early on. More importantly, however, this kind of practice will help you grow a thriftier mentality that is set on saving up for the future.
- Live cheap
You have probably heard or read this before somewhere else, but it still remains true today: There are two ways you can increase your savings early on in your professional life – you can either earn more money or spend less. With the job market being so competitive nowadays, augmenting your savings by earning more can be much more difficult than cutting down on your expenses. If you don’t have to live in a swanky apartment in Downtown Dubai, consider renting an apartment somewhere less expensive. Don’t get cable TV subscription if you don’t really watch TV often. Do the majority of your groceries during major mall sales, so you can grab discounts on your housing needs.
- Make a budget, stick to it
One of the most basic tenets of saving up is having a budget. Watching your regular spending and ensuring that you keep to your monthly budget helps in preventing overspending. Detail your monthly essentials and allocate a portion of your monthly salary towards meeting each one. Set aside a minimum amount for some retail therapy (don’t scrimp on yourself too much!), and then deposit the rest into a savings account so you can’t make any impulsive withdrawals.
You can also look into alternative means of earning money and making investments, such as trading in forex, although you will need the assistance of a forex broker in Dubai for such a venture.