There are several things you can do to start saving successfully for something you really, really want.
Weighing up your options and taking note of a few simple steps can really help you save successfully.
No matter what your dream is, it will need financing. As long as you have a plan and a little determination, your pennies will stack up in no time. Here are a few tips to get your finances on track in 2019:
Start by paying off your debts
It is very unlikely that you will earn more on the interest of savings than you will have to spend paying off debt, money owed and all of your other bills. Add up the numbers and compare to see where the main deficits lie then come up with a weekly plan to start paying them off.
There are a few ways to do this, but I recommend paying off items that charge interest and late fees first. Treat these ones with a matter of urgency and get rid of them first.
Look after the pennies
“Look after the pennies and the pounds will look after themselves” is a quote we have all heard somewhere in our lifetime and for good reason! The lesson to take from this quote is not to stop caring about the pounds, but shifting your focus on to the importance of how little efforts add up over time.
Saving should be done this way. Why? Because if you think of your end goal ALL of the time it can feel like it’s going to take forever and may make you feeling disheartened and want to end up quitting.
If you focus on the short-term goals, you will replace the feeling of frustration with a constant feeling of achievement instead, which will make you want to continue.
Separate your saving accounts
Loose change and notes are easier to spend if you keep them on you, if you can put them somewhere that is out of sight and out of mind then you won’t feel the urge to spend them.
Opening a savings account that is separate to your everyday-use accounts. One that you use for bills and such things should be kept separate.
Make a deal with yourself to not withdraw any money from your savings account
There are saving accounts available that charge you for making withdrawals, so this can give you an extra incentive to not dip into them!
Save on payday
People feel the most flush and less attached to money when they have just been paid. This is the best time to put your money somewhere for safe keeping.
If you get into the habit of putting aside money from your income right away then you won’t even have a chance to miss it!
Set a specific savings goal
When you start a saving fund, it helps to have a specific number in mind before you get going with plans.
This could be broken down into short term, medium and long-term goals.
Set yourself a luxury budget
People think they have to give up everything they love when it comes to saving money, like they can only do one or the other.
This is not the case, you just need to change your approach slightly! If you set yourself a spending budget for treats and luxury items, then you will still get a sense of reward from all of your hard work and efforts.
You can even use the luxury budget as a way to reward yourself for hitting certain savings targets along your road to the final number!
If you follow all of these tips then you will be well on your way to saving successfully, implement these steps will make it all become second nature to you.
Want to find out how savings savvy you are? Test yourself with this quiz from Sunny Loans.