Personal Saving Strategies

Personal Saving Strategies

PART 1: Lazy Dollars

I have considered the lazy dollars in my financial life and identified that there are vast sums of money that are lying idle in some investments I made without adequately analyzing the potentials for returns. One of the most significant forms of lazy dollars in my financial life is in business stock. There are goods worth $30,000 that are stacked in a warehouse, and I have to pay storage fees until they leave the stores. Keeping the products in the warehouse reduces the chances of selling them because buyers cannot see them. The other lazy fund is in processes that are required to keep things moving in my business. My business loses about $50,000 from inefficient processes that discourage customers from doing business with me. The other lazy stock is stock turn, which is about $20,000. This is due to slow-moving goods that take too long to clear off the shelves. This is due to the purchase of the stock of goods that are on low demand.

PART II

The savings plan involves taking keen measures on my spending and reducing the expenses that are unplanned for. The following are the strategies I will use to improve my saving culture.

1. Set aside money for my personal use first before getting into other expenses.
2. Use automatic saving plans that will deduct money from my main account into a sahttps://studygroom.com/x-ways-small-businesses-can-use-to-cut-costs/vings account.
3. Set a particular percentage of income that will always go into savings, no matter the circumstances.
4. Develop saving buckets for significant events around the year.
5. Develop an account for saving funds for emergencies.

The strategy of paying myself first is a strategy to ensure that I have enough money for personal expenses and household goods. This strategy is vital in ensuring that I do not take money from my saving accounts.

The strategy of using automatic saving plans will help me to avoid the temptation of holding money back and failing to save in the long run.

Setting a specific percentage of the total income for savings will also work in ensuring that I do not compromise the amount of money for saving purposes. It will also help me to save proportionally to my earnings.

Saving buckets are useful because I will be putting money aside with the goals in mind. The saving buckets will enable me to determine which activities are essential and save for them.

Saving for emergencies will motivate me to save more, even if the emergencies might never occur. The money accumulated in the emergency account will also be used in other investments.

References

O’Rourke, S. (2016). Promoting Economic Opportunity for North Carolina Children and Families Through Children’s Savings Accounts.

Ouma, S. A., Odongo, T. M., & Were, M. (2017). Mobile financial services and financial inclusion: Is it a boon for savings mobilization?. Review of development finance, 7(1), 29-35.

Sherraden, M. (2017). Can the poor save?: Saving and asset building in individual development accounts. Routledge.