How often have you resolved to wake up early in the morning, go for some kind of workout, eat something healthy and then go about your day? However, what ended up happening was you hitting snooze, sleeping in five minutes longer, finally finding the courage to get out of bed and then rushing everything without getting any time to do what you thought you would.
The financial goals we set also end up getting lost in routine. Spend, save, and manage sensibly to achieve financial security. More often than not, people are not able to save as much as they want.Unmanageable and high expenses do not leave anything for future investments. Another common reason is that people put their immediate wants first and savings later. The question arises -“How do we save money”? People set their clocks ahead of time to make sure that they are on always on time. This trick is pretty helpful in financial matters as well.
Here are some of the smartest ways that can help you inculcate deep rooted habits of saving money.
- Think of the money you earn as the source of your financial independence
Calculate the monthly cover that you need to live your life, keep that aside, and save the rest. If you follow this method, you will save a large amount regularly, something that you would have spent otherwise. This method will give you a much-needed clarity for your financial future. You can keep using the money you save for investments.
- Separate you bank accounts
An extra account is exactly what you need to save and manage you savings in a better way. It is significant to have a different bank account for savings and investments. To take this one step ahead, do not use a debit card for your savings account. This is an extremely effective method for all those people who find it difficult to put their money away. Following this method will also ensure that your savings stay intact even if untimely purchases keep on luring you to spend.
- Look for a side income
Taking up a legit side job over the weekends is a great choice to earn some extra money. You can enhance your income and savings by using this method. All you have to do is get creative and think about that one skill that you have and take up a related job. The best part – you get paid for something that you enjoy doing. The idea of weekend side-projects is gaining popularity; join the wave.
- Prioritise and build a list of life choices
Get clear about your priorities. By doing this, you will be able to follow the method of discretionary spending. When you know what is important, you will be able to smartly spend your money on your needs rather than wants. This isn’t to say that you are depriving yourself of something. However, you are prioritising your needs before your wants and this is an important approach to living a better life.
- Make intelligent purchase decisions
Put off your purchases for some time. Take your time to look for other brands, find better prices and find alternatives to buying thing. Don’t just hurry up in your purchases. If you look hard enough, chances are you will always find something better at a reasonable price. Think if it this way – what if you could simply add this money to a dedicated account meant to fulfil one of your expensive life goals (such as a luxury cruise)!
- Think again
The urge to spend your money, if not controlled, can be extremely overwhelming. Giving in to each and every impulse is not good for your bank balance. It is okay to indulge once a while and set limits for yourself. Study the pros and cons of everything, especially the costly things that you want to buy. Ponder whether what you want to buy is worth its price. You might change your mind about the purchase or completely forget about it.
- Give importance to your future
If you get into the habit of saving for your retirement, it will always pay off. Most people don’t start thinking about this at the right time. A very common reason is that people don’t see how things will be in the old age. For a person is twenties, retirement is not even thought. Thinking and planning about the future gives a sense of independence to everyone. Make sure that you are always in control of your life by thinking smartly at the right time and at the right age.
- Categorize your budgets
Build a sense of clarity about how much you are spending. Always keep a track of all your expenses. This must include every little coffee date, a household item or cash tips. Once you have a clear insight in your spending data, you can reorganize the data in different categories like household items, groceries, gas expenses, etc, and total each amount. You can easily download an expense-recording app in your smartphone and make it a habit to log every expense, however small it might be.
- Treat money like energy
If you wish to understand how money works, start thinking in terms of energy. Money is a finite source which needs to be wisely spent, invested, and reallocated. You cannot afford to take money for granted. It’s necessary to respect money and treat it wisely. Having an abundant mindset is a great way to help you master this.
Abundance in every area of life can only be achieved if you get rid of all your limiting beliefs that focus on the lack of things in your life. For every little penny that you spend, think that you will earn so much more than what you are spending. Finding different ways to ensure a consistent flow of income will not just secure your present and future but also will secure the future of future generations.