Are you overthinking about the fact that you should be saving money? Always telling yourself that you need to save money but somehow, something always comes up that leaves you putting it off until the next month? Then next month comes and more expenses and fun activities present itself.
It can feel like a constant loop if you do not have a proper plan to save your hard-earned money. Whether it’s saving money for your bingo games’ bankroll or for a vacation, it’s important to consciously think about how you’re spending your money and how you can save the small pennies.
The reality is that you’ll only truly start saving money when you’ve learned healthy money habits. Saving money should become a priority. It’s true, you do not need the latest sneakers or golf clubs. There are a vast number of practical ways you can learn to save money. The first step is to make it a habit, this way it naturally becomes a part of how you think of money and how to spend it.
Here are some practical tips to save money.
1. Record All Your Expenses
To start saving money, successfully, you will first need to figure out how much money you spend. Get into the habit of recording all your expenses, including your trips to the coffee shop, household items, online streaming subscriptions, and cash tips.
Once you have conducted a detailed list of your expenses, you can organise the numbers by categories, such as mortgage, groceries, and gas – total each amount. To help make this easier, there is a range of spending and budget tool apps available for you to download.
2. Always Budget for Savings
Now that you have a better idea of your monthly expenses, you can start organising and recording your expenses into a workable budget. In this budget, you should outline and see how your expenses measure up to your income – so you can plan how to spend while limiting your overspending. You should always aim to save 10-15% of your income.
3. Look for Ways to Cut Down on Your Spending
If the sum of your expenses are so high that it’s impossible to save as much money as you’d like, you should look at ways to cut back. You should look at all the nonessentials that you can spend less money on, including entertainment and eating out. Next, you can look for ways to save on your fixed monthly expenses such as your cell phone and TV bill. You can try out tools like this Calculator and see how much you could save just by switching cell plan.
It’s also a good idea to check your bank transactions and record all your subscriptions. Most times, we subscribe to things and forget about it. These subscriptions can accumulate over time and you’ll see that you’re wasting unnecessary money on subscriptions you’re aren’t even using.
4. Learn to Set Saving Goals
Setting a goal is always a great way to see how far you’ve come and getting to reap the reward of committing to something is priceless.
If you’d like to save money sufficiently, think about what you’d like to save for, maybe you’d like to buy a house, plan a vacation, or leave your family home and start renting. Work out how much money you’ll need and how long it will take to save for it.
5. Take a Look at Your Financial Priorities
Chances are that your goals are likely to have the biggest impact on how you allocate your savings, well after your expenses and income. Don’t forget to factor long-term goals too.
A great tip to keep in mind is to learn how to prioritise your goals for saving money. It will give clarity in terms of where to start saving. So, if you plan on buying a new car in the next year, you can start putting money into your savings now.
6. Make Saving Automatic
With today’s technology and automated banking apps, it’s really easy to schedule transfers between your cheque and savings accounts. This way, you can choose how much and where to transfer your money.
7. You Can Watch Your Savings Grow
You should get into the habit of reviewing your budget and checking your progress every month. This will help you stick to your savings plan as well as to see where you need to adjust and rectify bad spending habits.
Good Money Habits Becomes Easier with Time
The money-saving tips above are a really good way to start embracing a healthy relationship with your finances. Instead of wondering where all your money went, with discipline, you’ll be able to confidently interpret your income and expenses. What are some of your saving goals? Remember to be intentional with your budget and money-saving goals!