Everyone wants to save money but without good financial habits, it is very hard to reach the goal. Money slips through unconsciously and you are no closer to saving more than when you started.
By creating a plan and making saving money a habit, you set yourself up for financial stability. Below are helpful tips to make this happen and make saving money your second nature.
- Automate your transfers.
You save money without thinking about it when you set up automatic transfers from your checking account to your savings account. This is easier to do if your checking and savings accounts are on the same bank. You can easily divide your direct deposited paycheck and grow your savings every month.
- Question your purchases.
Do not buy anything just for the sake of. Ensure that your purchases are in line with what you want in life. If you know that saving for your first house downpayment is more important than new hoes, then it will be easier to stop yourself from shopping and put more towards your savings. Putting more thought into your purchases will help you put your money where your values are. In general, if it is not a necessity, like food or rent, and it cannot elevate your quality of life, then you are better off cutting it.
- Celebrate small victories.
Reaching your saving goals is a long road. It can be frustrating when you are just starting out. Keep the motivation up by celebrating small savings. The fact that you are able to set aside $20 is something. It is okay to start slow. Consistency is the key. If you save $20 every week, that is $80 in a month. In six months, you will have $480 saved! Keep your focus and this will establish the habit of saving.
- Try the anti-budget.
Not everyone is a natural saver and that is okay. If you know you will get overwhelmed by budgeting and spreadsheets, try the anti-budget method. You simply pull your savings from the top and spend the rest. There are no budget categories to keep track of. Just set aside what you can afford to save each month while ensuring all your bills are paid for. And you are done!