Saving money is a habit that needs to be cultivated among every individual. The majority of people want to save more money but they easily fall short of their financial goals without having any solid plan for savings. Life happens, money slips through your hands, and before you realize it, the end of the month arrives, leaving you nowhere closer to saving as you had planned.
Saving money is really important because you need to save money to fulfill your short-term and long-term goals and have financial stability in your life. Apart from that, you need to save money for your rainy days.
Ways to Get into the Habit of Saving Money
Here are a few simple ways to get into the habit of saving money. These ways will teach you about ways of saving money so that it becomes second nature to you and help you save money unconsciously.
Start with Small Savings
The first and foremost thought that comes to your mind when you think of saving money should be, ‘I need to start with saving money even if it is a smaller amount.’ This approach will help you get into the habit of saving money.
Do not stress yourself by making bigger claims than you can actually manage. If your monthly salary is $600 and you want to save it around $300 every month then it may be practically difficult to achieve, given what your current expenses are.
Always make a realistic savings plan which you can actually manage to achieve. Learn to be happy for even small savings that you’ve done every month. Small savings will turn out to be huge by the end of the year and you won’t even know it.
Turn on Automatic Savings
Another easiest way to cultivate the habit of saving is to automate your savings so you can easily move money from your checking account to your savings account.
You can either have your paycheck directly deposited to the savings account or do an automatic transfer of money within both accounts every month. These both things can help you move around the money so you know your savings are being deposited automatically in a different account each month.
Consider your savings account as off-limits – this is a territory you shouldn’t even think of crossing unless you face an emergency situation. Separate savings account where your money gets automatically transferred each month will help you not think about the money and continue to grow in your bank account as your savings.
Cut Down on Unnecessary Expenses
Another trick of developing a habit of saving money is to cut down on your unnecessary expenses. You can surely think of spending money on basic necessities of life – food, shelter, and clothing (not the expensive ones) and stay away from making expensive purchases.
Always question yourself before making a purchase. Is this item worth your money? Is it worth the time and money you have earned by which you’re going to purchase it? If the answer is yes then you can go ahead and get the item. But, if the answer is no, then do not get the item. Always go with your gut feeling.
Remember, your goal is quite simple: you should become a mindful consumer instead of being a mindless one. Once you abide by this goal, you will discover saving is quite easier than you thought it to be.
Give ‘Anti-Budget’ Method a Try
Nobody is a natural saver. Different saving strategies work for different people. In case, you are not fond of making budgets or spreadsheets, you can try a different method which is known as the anti-budget.
This method enables you to pull your savings from the top of your monthly financial budget and spend the rest of it. In this method, there are no budget categories that you need to keep a track of. All you need to know is how much money you can afford to save from your earnings each month.
It is noteworthy to add here that in your attempt of saving more money, make sure your checking account does have something in it so you can easily pay off your bills. It is always a good idea to save at least 20 percent of your income and then get this amount transferred automatically to your savings account in the beginning of the month.
Keeping Savings Goals Realistic
When you’re trying to save money, you are basically making a lot of sacrifices. You are deliberately cutting down on the unnecessary expenses and keeping yourself away from all things you have wished to buy.
However, it is also important to understand that you need to set up a realistic savings goal. In your attempt to save more money, make sure you do not impose too many restrictions on yourself and then set yourself up for a major failure.
Develop a savings plan which is easier for you to achieve. You wouldn’t want to keep yourself back from spending money for too long and then giving up on all the hard work in just a snap.