As much as we don’t want it to, money does control a lot of things in our lives. It’s much easier to spend the money than it is to save it and when we’re adults, we spend our money carelessly because we don’t have any responsibilities. However, you do get to a point in your life where at some point, you’ll need to think about putting some money towards your future. If you’re a spendaholic, then here are some top tips on how to save your money.
Transfer Into An Account You Can’t Touch
We all have payments that must be made, like taxes, rent or mortgage payments and these are expenses that leave our accounts automatically, and we really don’t have a choice in stopping them. So with this in mind, set an amount that you could take away without making life difficult. It doesn’t matter if it’s a few dollars, ten or more because it’ll all add up eventually. Now open an account wherein you cannot touch the money until a certain time frame has passed and credit that account with that set amount of money either daily, weekly or monthly. Having little access to it means you won’t be able to remove it without consequences and it’ll eventually just be another expense you have to cater in like your taxes. You can also use a compound interest calculator to determine the future balance of your savings.
Cut Back On The Luxuries
Giving ourselves a treat every once in a while is a great way of praising yourself and giving yourself credit for something you’ve done or achieved at that moment. However, materialistic things can become quite addictive, and it’s important to keep a reign on these luxuries so that you don’t end up spending beyond your means and therefore get used to a lifestyle that you simply cannot afford at this present time. Luxuries are anything that isn’t household bills, medical prescriptions, and groceries. So, count any extras like a hefty phone contract or gym membership as a luxury and find ways to cut back on some luxuries each month. Ask yourself if you need it, rather than want it and whether it’ll be used or bring you more joy in your life.
Set Yourself A Goal Or Two
We can benefit from goal setting because it provides that motivation needed to be successful. There’s a lot of gratification that can come from achieving a goal, so when it comes to your finances, setting goals can help avoid falling off the saving wagon. Don’t set unrealistic goals because this will de-motivate you and will reduce the chances of you saving any money at all. Make a daily, weekly or monthly goal and don’t forget to set some big goals for the year. These little goals that you hit will help go toward your bigger targets. Start small and then go bigger!
Ask yourself what you want to save money towards too. You might have just gotten engaged or have plans to buy your first property. Having a reason for your goals will only encourage you to commit to saving.
Build Up An Emergency Fund
An emergency fund is great for those blips that occur in life. They are normally unexpected, and some can be a financial nightmare. That’s where your emergency fund comes in. An emergency fund should be used in the event of an emergency where you cannot supply the funds from your current savings or on a credit card. Having this fund is going to ease some of that worry and pressure when owning your first home or paying for a wedding. You’ll know that you have a bit of a safety net to fall back on should you need it.
Don’t Be Too Hard On Yourself
Saving can be difficult, so it’s important not to be too hard on yourself. Reward yourself whenever you’ve reached a milestone and don’t feel guilty when you spend money on something you really needed and wanted. At the end of the day, you’ve worked hard to earn the money you’ve got so there shouldn’t be any guilt in treating yourself. Always assess your savings too as there will be times where you may be able to save more or have to reduce your saving amount.
As you start to save money, it may be tough, to begin with but it will usually get easier and it’ll eventually turn into a habit that you don’t even notice! So start saving your money today so that the future is a little less bumpy and your finances are healthier.
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