How to get into the habit of Saving Money
To some of us, saving money doesn’t come quite as naturally as we might like. As much as we plan meals in advance so our shopping bills will be smaller or try and bypass that extra lunch spend every day at work, we still end up picking up things we don’t need, or giving in and indulging in one too many takeaways throughout the week. While this is harmless for those who have the money to spend, those on a tighter limit could find that this might do some harm. While some may opt for applying for a payday loan online in a financial emergency, knowing how to get into the habit of saving money could provide a long-term solution in the meantime. Here, we’re exploring how you can do exactly that.
Give Yourself A Reason
If you’re just saving for the sake of saving, there’s no reason for you to have that money sitting in a savings account in the first place. You’re probably going to reach for it when things get tough or you want to indulge in that big purchase. However, giving yourself a reason to save can help you to resist that temptation. Whether you choose to set up a fund so you can retire early or you want to save up for that dream holiday, giving yourself a goal to work towards could help to encourage you to actually save and not indulge too early.
Set Up Automatic Transfers
Setting up automatic transfers from your main bank account to your savings account is a great way to build up your savings without actually having to do anything. Of course, you’ll need to know how much you can afford to save each month and once you’ve worked out a realistic amount, setting up the transfer is easy. What’s more, the rise of online and mobile banking is making it even simpler for you to set up a transfer or direct debit by yourself in the comfort of your own home without needing to visit a bank.
Save The Difference
A great way to start saving without having to make any major transfers is to ‘save the difference’. In other words, any money you save by choosing a more cost-effective or cheaper option (for example, swapping out a shop-bought coffee for a tin of instant granules) can be put into your savings. It’s money that you wouldn’t have missed had you kept up with your previous spending habits, so if you haven’t hit rock bottom financially, you’ll know that it’s money you can afford to set aside.
Take Advantage Of Technology
Technology is making everything from banking to budgeting and money management so much simpler. There are countless apps available that allow users to list all of their income, their outgoings and more and some will even analyse where it’s possible for you to make savings. Similarly, if you do have a budget that you struggle to keep track of, budgeting apps can do all of this for you. While some apps do come with a fee for use, most are completely free and therefore budget-friendly!
Question Everything You Buy
The best way to save is to stop and question everything that you buy. We all have different priorities as to what we ‘need’ and what we just really really want and for some, their favourite luxury tea bags might be well worth the price tag. For others, they’d be happy to opt for a cheaper alternative and instead put the saved money towards a holiday or a new car. Whatever the case for you, stop and think about these purchases before you make them to get into the habit of putting back unnecessary or impulse buys.
Saving money isn’t something that always comes naturally, but it is something that you can build into a habit. Through the use of technology for budgeting or automatic transfers and a simple introduction of a goal for your savings to go towards, you can better organise your money and how you spend.
