Build your savings slow and steady!

I have met many people during my course of work, during ICT, during networking seminars etc. And whenever the topic comes to something related to finance, many would say that they do not have much savings. Or simply, they could not save from the monthly salary. Every single cent of their salary seems to vanish by the end of the month!

So I always have this advice for those whom I have met and have this problems.

Start small and steady. 

Forget about the common advice that tells you to "pay yourself first" then pay others etc. This obviously will not work on people who has loads of bills or people who has no discipline. Many whom I have spoken to had tried this method but still failed to have savings. Because, by the end of the month, they would have used up the money that "they paid themselves first".

So what I advocate is: START SMALL AND STEADY!

So what is this small and steady all about?

First of all, you need to get hold of a piggy bank; one of substantial size and cannot be opened easily.

Next, what you do is, dump all your $1 coins into the piggy bank. Only the $1 coins. I know the Singapore Government and Singapore Mint is going to kill me for encouraging people to hold on to their $1 coins and reduce the circulating amount.  

SORRY!

Image credit: wikipedia

Everyday when you get home, drop your $1 coins into the piggy bank.When you get the hang of it, you may also start dropping your 50-cent coins into the piggy bank.

Just keep dropping your coins into the piggy bank and watch it grow and grow and grow.

On average, I saved between $500 and $1200 in coins every year. And I DO NOT deposit these coins directly into my bank accounts as there are charges for depositing coins. There are times when Singapore Mint or the banks have promotions for FOC coin-deposit services. Watch for these promotion periods and deposit your coins. Otherwise, you may wish to count your coins and change your coins with the hawkers or provision shop owners or any of those in retail business. They will be more than willing to trade notes for your coins.

You will realise that this "small and steady" has little impact on your spending behaviour as most people do not pay attention to "loose change". If you do not see the figure in your account, you tend to disregard the existence of it.

So, start now! SLOW AND STEADY!



Tags: savings, slow and steady, coins, Singapore Mint, piggy bank