5 Top Money Saving Tips
Do you ever sit and wonder why you never achieve your money saving goals? Just when you think you have an extra amount, emergency expenses always come up. Your car breaks down, a friend needs a loan, or you need to rush your child to the ER. And the never-ending cycle goes on.
We have been told countless times that saving money sets the foundation for financial success. But it is that easy? Well, saving requires discipline. This article will help you reinforce your money saving habits. Let’s dive in and discuss tips that you should implement to achieve your financial saving goals.
- Budget, and stick to it
Budgeting is a vital step to the development of sustainable saving habits. How much money do you earn? How much do you spend? What are your financial goals? These are just some of the questions that you need to ask yourself when budgeting.
Be sure to keep track of your spending habits and cut down on the seemingly small purchases. For instance, if you order in two cups of coffee daily, then you could consider homemade coffee. Purchasing a coffee maker may be a great idea if you are a coffee lover! You will be surprised how much you will save when you forego your daily store-bought beverages.
Consider using budget planners and stay a step ahead of your financial journey.
2. Set concise saving goals
Most people save after paying all their expenses. I have been down this road until I learned this tip from a friend. If you plan on saving after paying all your expenses, truth is, it will never happen.
Picture this: You pay for all your expenses. Your insurance, rent, food, groceries etc. And you have $2400 to spare. Your friend needs a ‘small’ favor, and you part with $1000. Within the next few days, you will not have any substantial amount at hand.
A person who is keen on saving will first deposit the amount they need to save before paying the expenses. Some people may argue that this is not practical. However, this will only work if you have a realistic budget.
3. Separate needs from wants
Needs are things that you must have to survive. For instance, you cannot live without shelter and food. Needs vary from person to person. Some people have prescriptions that they need to refill every month. This is a need.
Some wants that we are all guilty of include entertainment subscriptions such as Netflix, takeout meals, trendy gadgets or gym subscriptions. If you are working with a tight budget, there are a zillion of resources online that you can use to work out. Or better still, work out within your neighborhood.
Note — I do not mean that you should never get your wants. After all, we all need to relax and enjoy after a long day at work. Rather, balancing your wants and needs as well as sticking to your budget will help you achieve your saving goals.
4. Automate your savings
Savings automation will help you to cut down the temptation to spend money once you receive it. And it has been pivotal in my financial discipline journey.
With the popularity of the gig economy, we are seeing most contractors opting to save a percentage of every cheque that they get. For instance, I save 10% of every payment that I get. Initially, this seemed like such small amounts. Until I checked my balance and I was very proud of what I had achieved! This may not work for everyone. I have friends who save up to 80% of some cheques, and it has worked great for them.
If you are in formal employment where you are paid periodically, schedule a standing order to your saving account. Almost all financial institutions offer automatic transfers from checking to savings accounts.
5. Discipline!
I cannot stress this enough. Saving requires discipline. You are probably working with tight financial budget. And you may be straining right now. And you hate it there (we hear you ). Look out for the rewards later on.
If you having challenges when it comes to savings, I recommend Anas Alaoui book. The discussion on Delayed vs. Instant gratification will reinforce your discipline not only in finances but also in other life aspects.
