Sometimes the hardest thing about saving money is getting started. Saving money is often easier said than done, not when you see a new dress on display and you like it and you want it by all means but then when you realize you can’t because you have a set target for something biggest then that is when you have mastered the art of self-discipline especially when it comes to financing.
LEARNING HOW TO CUT BACK ON SPENDING TO REACH A BIG GOAL
1. RECORD YOUR EXPENSES
The first step to start saving money is to figure out how much you spend. Keep track of all your expenses that means every coffee, household item, and cash tip. Once you are able to keep records of money spent on your groceries, Gas, and mortgage, keep bank statements to give accuracy at the end of the month.
2. BUDGET FOR SAVINGS
Aim to save 10 to 15 % of your savings, by the time you record your savings and you know approximately how much you spend in a month, you can begin to organize your recorded expenses into a workable budget. And be sure that your expenses measure up to your income, that way you are able to plan your spending and limit overspending.
3. FIND WAY TO CUT YOUR SPENDING
If your expenses are so high that you can’t save as much as you would like, then I guess its time to cut back on nonessentials that you can spend less on.
4. SET SAVING GOALS
One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for, perhaps you are getting married, planning a vacation or saving for your future. Once you have figured that out, then move unto knowing how much you will need and how long it might take you to save it. Sometimes its good to start with a small achievable goal because reaching a smaller goal at first and enjoying the fun reward for what you saved for it can give you a psychological boost that makes the payoff of saving more immediate and reinforces the habit to set bigger goals.
5. DECIDE ON YOUR PRIORITIES
Learn how to prioritize your savings goals, so you can have a clear idea of where to start saving, for example, if you want a car in the nearest future, you could start putting money away for it💁.
6. MAKE SAVING AUTOMATIC
Splitting your direct and setting up automated transfer are simple ways to save money since you don’t have to think about it, and it generally reduces the temptation to spend the money instead. Almost all banks offer automated transfers between your checking and savings accounts, this allows you to choose when, how much and where to transfer money or even split your direct deposit of salary so every paycheck goes directly into your savings account. Trust me this one works perfectly as over the years this tip has helped me save up for my set goals💯.
7. WATCH YOUR SAVINGS GROW
Review your budget and check your progress every month, Not only will this help you stick to your personal savings plan, but it also helps you identify and fix problems quickly. Understanding how to save money will inspire you to find more ways to save and hit your goals faster.
Reminding yourself to track your progress is an effective way to stay on top of your saving goals. *If you are not quite where you want to be, don’t get discouraged* we all make mistakes, Life happens, So as long as you check-in, pick yourself back up and keep going, that’s what counts💯
Gracias xoxo 🤍