How Teachers Can Save Money even with a ‘Meager Payslip’
Since time immemorial teachers have been notoriously known to receive peanuts for their services, except some in some few countries. Most teachers are not able to save for retirement or have returns on investment for any monies they may own.
The following are some of the ideas teachers can embrace to help them save money from the little they earn.
Join or Form Village Loan and Saving Associations
A teacher can use Village Loan and Saving Associations (VSLA) where they contribute every month 2.5% of their salary to the association. At the end of the year or more, the teacher then takes out all of his savings.
In addition to the method above, the teacher could deduct 0.5% of the total money collected and deposit it in a high-interest bank account such that the funds multiply as they think of an alternative investment.
Go for Low-interest loans
Teachers could go for low-interest loans and invest in high return investments. The teacher can then save the profits from the venture as the returns pay off the loan.
Deposit and Save with high-interest banks
Teachers could also make use of high-interest bank accounts and make a minimum deposit. An individual who uses this principle gets paid for the principal deposited and the minimum balance on the account
Remember, for this method to work, the teacher needs to save little and plan for the long term. Note that many millionaires have used this concept to become millionaires.
Having a bank account can also enable a teacher to save more and spend less. However, caution must be taken not to open an account that eats up your money as opposed to earning.
One should look for banks that have zero fees on account transactions but give interest rates of not less than 5% p.a on deposits.
Have Alternative Investments such as Farming
Engaging in farming can also act as a saving buffer as the returns of investment are usually between 3 -5% higher than real estates.
Teachers who engage in farming have been known to have more money to save than their counterparts.
Teachers can also start tracking their spending; this will show you how you spend your salary, and with this will help you will realize where your money goes and how you can save it.
Using the above option, a teacher may create a monthly budget that they may use to save.
In addition to the above, you can cut down on your expenses and investing the balance in other avenues that the teacher understands better. For example, you may be paying more for your electricity than you have to, you may find that using energy savers may cut your expenses by nearly 45%.
Once you find out how you spend and the unnecessary expenses, it time you get a clear budget. Having a budget makes you accountable and more focused on your goals
Take Advantage of Ongoing Promotions
Taking advantage of promotions can be another way teachers can save. For instance, during the flash sales, a teacher can save 50% more on any purchases than regular sales.
Read More on Investment Tips
Reading an investment book a day can be an eye-opener or idea generator on the different ways a teacher can save, invest and generate more money without quitting their job.
For example, by reading ten pages a day of the barefoot investor, a teacher learns to save over 80 percent of their salary and still enjoy the benefits of their work.
Saving cannot be without some form of the passive form of investment, and one can’t invest unless they sacrifice.
It’s crucial, therefore that the teacher sets goals and time frames on when and how they will break out of the fierce rat race (living from paycheck to paycheck).