Most of us know the importance of saving for financial goals but are not ready to make the commitment.
So to make things easier for you, we have outlined five ways to help you save more.
1. Have clear goals
Know what you’re saving for. How can you reach a target if you don’t know what the target is? Having clearly defined goals will help you stay motivated with your savings plan. Want to save for an apartment? then figure out how much you need, by when, and how much you need to save every month in order to reach that goal.
When your goals are reasonable, you will be able to stay motivated for the long term and not fall victim to all the other things you can use your money for on a daily basis.
2. Let your savings come first
So many people don’t save or find saving difficult, because they are going about it all wrong. They follow the old method of trying to save, which is to spend first and save whatever is leftover.
Instead, follow the “pay yourself first” strategy and set up automatic savings just like any other bill, then spend whatever is left over after you save. This takes the emotion out of it, and before you know it, you will see your savings account balance actually going up month after month.
3. Prep your meals for the week
Dining out and entertainment are two of the biggest money pitfalls for people. But with a little bit of planning, you can hit the store before the week starts and have your meals planned for the rest of the week. Also, when you eat at home, not only are you most likely saving money, you’re probably saving calories, too. And who doesn’t want to be rich and fit?
4. Learn to cut corners
Divide your ‘needs’ into three categories: Must have, Should have and Could have. Don’t compromise on the first; consider spending on the second and avoid the third for as long as you can.
Also, divide your budget into three categories to0; Standard expenses, Savings and Splurging
Ensure you put away at least 10 to 15 percent of your take-home pay every month. Make that the bottom line and ensure you don’t go below that. It isn’t very difficult if you think of it. If you have money after your basic expenses and savings, then choose to splurge.
5. Invest in yourself
Education is the best investment and who does not know this? Unlike everything else, no one can steal it from you. Sounds old school perhaps but it is as true as it gets. Instead of spending carelessly, invest in being better. Set goals- career and education and stick to them.