Dear readers, one of the goals which I have set for myself this year is to save a certain amount of monies – cash to be specific.
I am not revealing this amount that I intend to save this year.
This is really because the quantum of targeted savings is individual-specific and hence there is no point sharing the quantum because the quantum can only makes sense to the saver, in my belief. For example, an individual can aim to save $50,000 this year: to one, this can mean lots of savings, but to another, this may not be much. Reason being, different people earn different incomes.
What is important, in my belief, to share is on the process. I believe it takes some form of diligence to work toward one’s goal for savings, for example, the very basic foundation needs to be laid, e.g. tracking one’s spending and monitoring areas where one can improve one’s savings. If you aim to save towards a certain sum and do not have an existing system to track your income and expenditure, I will strongly encourage you to create an excel spreadsheet today and starting recording all incomes and expenditures. It may seem daunting to record many figures but I assure you that the template can only be improved for the better in time.
And also definitely, in the process of saving up, one should not become too overly frugal and avoids spending in ways which can benefit or add some simple pleasures of life: good food and recreational activities; these discretionary spending can be on an adhoc basis.
I spent quite a fair bit on food due to the new year gatherings at work, but this is precisely because that I have a system in place, that I knew I have overspent a little and hence will rein in a bit on food for the rest of the month.