You work hard every day and are as guilty as most putting other peoples’ needs ahead of your own. The notion of saving money for long term goals seems next to impossible given all the day to day expenses you’re strapped with. You’ve no doubt asked yourself how you can save money when you barely have enough to make it from paycheck to paycheck now. The same theory holds with savings money as with losing weight. If you set a goal to lose 50 pounds in six months – the goal is not only intimidating, but more than likely, unattainable. The same goes for savings money. If you’re goal is huge, you’ll be less inclined to start saving due to lack of a path. Follow these tips for saving money and your bank will begin to fill up first.
The first step in saving is to develop a commitment to delayed gratification. Take small steps. Instead of committing to socking away £200 a month, or whatever your goal may be, break this down into smaller, more attainable, daily goals. Saving £200 a month is equivalent to saving roughly £6.50 per day. If it sounds easy, in this case, it actually is. Set up a separate online banking account (you can find options here), and transfer these small daily amounts saved into this account. Seeing the balance grow will serve as your continued motivation.
Take stock of you daily spending. Lunch out is probably close to £10. Maybe you only have lunch out once a week. Forgo this until you’ve met your goal. Put your gym membership on hold and get outside for your exercise. This is free! Transfer those savings to your new account. If you lean towards prepared food at the grocery store, start buying fresh ingredients. Not only are these healthier, but often less expensive. Keep track of your grocery spending for a week and work to shave 10% off of that. Transfer these savings to your new account. Do you tend to shop at expensive department stores? Often the same styles and quality can be found at discount department stores for substantially less. Again, transfer these savings to your new account.
Within two months, you should begin to see a huge difference in your spending habits. This translates into savings habits! Congratulate yourself for developing that sense of delayed gratification and building a long term nest egg!