One of the foundations of personal finance is to understand the importance of saving money. And it’s not just saving money for the sake of saving money – It’s more about saving more money as fast as you can in the most efficient and easiest ways possible.
We all know saving money isn’t easy. If it were, many of us wouldn’t have struggled preparing for the rainy day. But just because it’s hard doesn’t mean you shouldn’t do it. If you’ve always struggled to save money no matter how you try, here are 5 easy and painless way to help you get the job done:
Starts in the mind
When you’re starting something as serious as saving for a better future and you want to be successful, you must first have the right mindset. Thinking you can’t do it or you’re not really good at this wouldn’t do. To easily switch your mindset from can’t to can, you need to know your why. Why do you want to save money? Is it for a specific goal or investment? Is it so you don’t have to worry about financial emergencies? Know your why then focus your energy on that why until saving money is as easy as ABC.
Change your lifestyle
Changes are inevitable if you want to save more money successfully. But like most people, you probably dread or fear change. This is when we’d tell you that changes don’t have to be major so you can save more money. Minor lifestyle changes like eating out less, ditching the sodas and using cash more frequently are some changes that can help you achieve your financial goals. Once you’re comfortable with little change then you can move on with bigger changes like downgrading your phone plan or cutting off one of your credit cards.
Make it automatic
Do you know why it’s easy to use your credit card for impulse purchases? It’s because you don’t see and tangibly hold the money in your hands hence easier to spend. The same principle holds true for saving money. If you don’t see it, it’s easier to set aside for financial emergencies. This is why automatic saving is getting all the raves. When you set-up automatic saving transfer with your bank account, you won’t see the money but they add up over time nonetheless. Banks carry out the transfers leaving you less work to do.
Give your savings account a name
It’s not enough to open a generic account where you can park your savings. When temptations come knocking, it’s easy to dip into this generic account and before you knew it, your savings have dwindled down. What you can do instead is speak with your bank. There are plenty of online banks that allow you to open multiple savings accounts that you can also personalized with specific names. You may tag one account as your emergency fund than another for your business capital and yet another for vacation. If saving gets this personal, it’s easier to focus on your goals and do what you have to do.
Keep saving again and again
Saving money is only half of the battle. To really win in this aspect of your finances, you need to keep saving even after you’ve reached your emergency fund goals and other financial goals. The trick is to make saving a part of your lifestyle until retirement or even after that. To keep saving money, it follows that you’ll probably need to set new goals again and again. This is a journey with no ending. If you do decide to join the bandwagon, be ready to do this for the rest of your life.