Not everyone is born with an innate talent in saving, and this is actually a skill that is so hard to master. The art of saving requires constant dedication, practice, and patience in order to be perfected. These are more tips on how you can better yourself at saving.
Don’t Forget to Pay Yourself First
It’s easy to say that you want to save money, but once you’ve gotten hold of that paycheck, you might find it hard to let go. In order to save effectively, have a portion of your salary automatically deposited to your account so you’ll have no chance to spend it on impulse.
Have a Budget
You might be too bored of reading this from every financial blog or forum that you’ve been to, but it can never be taken off the list because it is true. By having a budget, you can keep track of your expenditures and have a detailed view of where most of your money is going. This can help you assess which areas to improve on.
Set Realistic Goals
While having a goal is important, it’s even more crucial to have ones that you can actually meet, or else you’ll become frustrated. Sure you might want to save as much as £500 a month, but don’t be too harsh on yourself if you can only save £100. Ideally, you have to save at least 20% of your monthly salary, but 10% would be welcome if that’s all you can afford for now. To give you the momentum, start out with smaller amounts that you are comfortable with, but make sure to increase your contributions as time goes by.
The “Wait for 24 Hours” Rule
Many impulse purchases happen when you’re out, even if you just originally intended to window shop. If you got tempted with something, walk away from the store and wait for 24 hours before you decide to buy it. This can give you enough time to think if it is a worthy purchase. If that time has passed and you decided that you really want it, then go back for it. But chances are good that you change your mind and decide against buying the item, with the realization that you really didn’t need it in the first place.
Know What to Do With Extra Cash
Perhaps you received a gift, a tax refund, or a bonus. Although your initial reaction would be to spend it immediately, control yourself and deposit it instead.
Save Your Change
Each time you receive a change, toss it to your piggy bank and bring it to the bank once full. Don’t have it changed for bills though, but rather deposit it. This is a great way to save money without you even noticing it.
Make Cut Backs
If you’ve been spending a lot on coffee or dining out, make small sacrifices instead. You can rather just make your own coffee and bag your meals at work. Throw the savings you have gotten from these sacrifices to your account.