There is no shortage of money-saving tips and guides on the internet. A lot of them, however, are severely out of touch and can even dissuade you from saving. Renting out a spare room and other similar pieces of advice will not work if you do not have the extras that are often talked about. Saving can be done irrespective of how much makes it to your pocket at the end of every day, week, or month. Here’s how.
- No Amount is Too Small
Creating a saving habit within yourself is where it all starts. No matter how little the amount is, teaching yourself to always put a section of your income away is important. The more routine it feels, the better. Nowadays, banks are increasingly becoming suited to even small saving amounts. They mostly do not charge crazy fees for account balances being under a certain amount. Smaller financial institutions are more likely to give you a better interest rate than the big banks anyway. All it takes is a little research and commitment.
- Different Savings Accounts For Different Goals
There is no limit to the number of accounts you can have and you can set each aside for your particular goals – a car, a house, that overdue trip to Aruba. Removing the overlap helps differentiate what money is for what goal, which you cannot have with one account for all your goals. Seeing those amounts rise is highly motivating.
- Set Up Automated Transfers
Out of sight, out of mind. You cannot spend what you do not have, and that is a good thing when it comes to saving. Automatic transfers to your savings account will save you the temptation of saving the money that would have otherwise been idly sitting in your checking account. Eventually, you will be so used to it that you won’t be consciously noticing the transfers.
- Know What You Value and Spend On That
This one is pretty straight forward. Do not pay a monthly gym membership fee if you have no plans to go there. Advertising is getting pretty seductive these days, and you may think you want something when you really don’t. Know what works for you - what brings you value and only spend on that.
- Know When To Say No
In addition to knowing what you value, you can’t have everything. Saying no with tact and balance is a skill that can save you a whole lot of money. Whether to yourself, friends, or family, saying no is something you should be ready to do when things just do not make financial sense for you.
- Track Your Spending
What gets measured gets managed. How many times do you cringe when you go through your banking statements? Watching money leave your account is a real eye-opener, and regularly tracking your expenditure is a great way to curb bad spending habits.
- Find an Accountability Partner
Find someone to keep you in check and to celebrate with when you reach certain milestones. Having someone else be aware of your goals helps keep you accountable because it is not just you anymore.
- Think of Ways to Earn More
Smaller incomes may make it a little harder to save. Rather than deny yourself of every single joy, you can find ways to earn a little more.
It’s All About Planning
No matter how hard it may seem, saving is about planning – specifically for the future. Little exercise may help cultivate the positive habit. With a sidekick as helpful as the Vibe Planner, you get savings goals and 30-day savings challenges that help you keep track of your progress, or remind you when you’re overdue on setting aside some savings. Get yourself a copy here.