Saving doesn’t have to mean the end of fun.
Some people think that learning the secret of being able to save for the future while enjoying the moment you’re in right now is the secret to a happy life. However, in order to do that you’ll need to be able to work out when is the best time to spend and when you need to save – and that can be challenging (find more info here). If you want to make sure that you get the most from your life at all times then these money saving tips will help you to do it.
Get some transparency on your finances
There’s nothing more likely to stop you from spending and saving wisely than having no real idea what’s happening with your finances. If you’re not entirely sure how much comes in and goes out each month – and what happens in between – then it’s going to be tough to ensure you have the money for the things you want, now and in the years to come. To resolve this problem, according to online broker Solution Loans, you should start by tracking your finances and budgeting with the cash that you have. You might be surprised just how much you spend that you hadn’t really noticed.
Treat saving as a key financial goal
Specify a target amount and a time period in which to save for it. You’ll also find it much easier to save money if you separate your savings account from other bank accounts. When you get paid at the start of each month set up a standing order so that your monthly savings amount is transferred out straight away to that separate account. That way you’ll get used to not having your savings money to spend and it won’t feel like a loss to your cash flow if it’s not available.
Set a cap on your regular monthly outgoings
If you want to enjoy life then simplicity is going to be a key part of that. Multiple monthly payments, all going out at different times and eating into your earnings can be very distracting and can make saving difficult. So, before you sign up for another monthly payment – whether it’s a gym membership or a car loan – work out whether you really need to add another payment to your monthly outgoings, as it’s just another thing to think about that will detract from your ability to save.
Put money aside individually to save for specific goals
For example, you may have a fund for travelling and another for a deposit for your first home. You’ll get a lot more satisfaction from putting cash into these named accounts each month and watching your totals grow towards your dreams. Remember to automate wherever you can – if you don’t even have to think about transferring the money over then you can just get on with enjoying life instead.
Take some time to feel proud of your achievements
When you complete on your first home, sit back and congratulate yourself on the financial steps that got you there. When you’ve saved enough to pay off your debts take a moment to feel proud. If you mark each savings achievement you’ll be much more motivated to go on to the next one.