We all know its important to save. But, most of us are not in the habit of saving. We use our financial situations and make excuses when the Mr Delivery app is most used app on our phones. How many of us have a long-term savings account or enough savings to cover unexpected expenses for emergencies?
You see, no one needs to tell you that you should start saving. Furthermore, you need to stop telling yourself that you can’t afford to save or that it’s not important to save. To protect yourself from debt and financial stress, you need to get into the habit of saving. Here are a few useful tips.
How to get into the habit of saving
1. Check your spending
Do this little exercise for a few months and take note of everything you’re spending your money on. By keeping track of your spending habits over a period of time, you will get a clear picture of your financial situation. You’ll actually be surprised to discover where your extra money really goes. If you find that you’re spending too much on entertainment, as well as things you could do without, then it’s time to start prioritizing.
2. Stick to a budget
Once you’ve discovered where your money is going every month, it’s time to make a budget and stick to it. If you stick to your budget, you won’t waste money on things you don’t really need. It will be hard the first couple of weeks but it gets easier with time. Immediately open a savings account that doesn’t give you immediate access. This doesn’t mean you should stop enjoying life, it just means you should cut down on your spending so you can save more for the future.
3. Stick to a fixed monthly saving
It’s very important that you commit to saving a specific amount every month. This makes it look like it’s part of your monthly expenses. Transfer it as soon as you get paid or set up an automated debit order and watch your savings account gradually increase.
4. Start small
The best way to get into the habit of saving is to start small. So, start with as little as you can. If you overwhelm yourself and save more than you can afford, you will fail. Focus on your goal, which is to save a lot. However, you need to take it slow.