In today’s economy, it’s hard enough to keep up with the cost of living, but the importance of saving should not be underestimated.
There are always unexpected expenses that come along with the regular expenses like rent, school fees, groceries and clothing. It seems almost impossible to save. But by starting to save, however, no matter how small an amount, you will be taking the right steps towards your financial freedom. It will help you feel empowered and to become financially prepared for whatever the future might throw at you.
How to Start Saving
- Make Saving A Priority and Fun
Saving should be a priority. Figure out why you want or need to save money. It will also help if you make saving fun. You can try to top your savings each month or compete with a family member or friend.
- Create A Budget
When you are able to track where your money is going, you will be more
aware of your spending habits, eliminate unnecessary spending and be able to
save more.
- Pay Off Debts First
Most debt comes with high interest rates, so it makes more sense to pay
off these debts first seeing that you are unlikely to earn more interest on
your savings.
- Start Small
After paying off your debt you can start by saving tiny amounts. These
amounts will start adding up if you save regularly. By doing this you will also
see that you are able to save and you will start saving more.
- Set A Savings Goal
Determine what you are saving for and how much you need to save monthly
to reach your target. Then set a date
when you aim to have saved enough. You need to create a financial vision for
yourself and your family as well as a few more easily achievable short-term
goals to reach along the way.
- Separate Your Savings
It is important to keep your savings separate from your other money by
opening a separate savings account. By doing this you will also earn interest
on your savings.
- Set Up A Debit Order
This is an instruction to your bank to pay money from one account to the
other. You can do this to make sure you don’t forget to transfer the money to
your savings account each month.
- Review
It is important to evaluate your financial situation almost every day. Look at your balances and financial transactions to ensure that you stick to your savings goals. By doing this it could also help prevent you from making an impulse purchase and rather to save that money.
If you have any additional tips please let us know! We’d love to hear from you.
