Have you been going all out lately? Does it seem that all of the hard earned money you earn is going nowhere? Do you feel that you are splurging every payday only to end up broke a few weeks before the next payday? Are you wondering why you can’t seem to keep your money in your bank or anywhere else, and you keep on spending it?
Aren’t you scared that someday when an emergency comes up, you won’t have any money to pull out? You were busy believing that you have to spend every cent you have because you are “rewarding” yourself for your hard work. Because of that, you didn’t have money to pull out when you suddenly lost your job, or one of your family members got sick or things like that.
According to Investopedia:
“An emergency fund is an account used to set aside funds needed in the event of a personal financial dilemma, such as the loss of a job, a debilitating illness or a major expense.”
For these kinds of dilemma, you have to have an emergency fund to pull, this is of course separate from your savings. If you are having a hard time, know that it is wise to start small and gradually increase your savings as you go along.
Here are some tips to save some of that hard-earned money for later when you need them:
1. Think Before Buying
Imagine stepping into a shop where all the red banners saying “SALE” are enticing you. You go and get your basket and fill it with items that are 50% off or even 75% off. In your mind, you are saving a lot of money because of the sale. But unfortunately, you are not saving money, in fact you are SPENDING. Yes, instead of saving 50% or 75% of the item like what you want to believe, you are actually spending 50% or 25% of the amount of the item you are buying. Think about it, if it wasn’t for the sale, would you have bought those items? No. Most often than not, the items you buy from sales are items that you just want, you are tricking your mind that you need them when in fact you don’t.
You need to have a moment for yourself before ever buying anything. Always remember if you should buy the item or not. Do you need it? The answer should be clear. If the item is expensive and a major purchase, allow yourself to think about it for at least 30 days. If after 30 days, you still need it, then you are sure that it is not a pulse of the moment and you can go buy it.
2. Boot Camp
You might want to go to a financial boot camp that teaches people how they should spend their money wisely. There are mentors and coaches out there that offer their knowledge to help people like you who can’t seem to start saving. These people are proof themselves, they were able to save and are in turn helping other people do what they were able to do.
If you can’t afford a mentor, you can start by reading blogs and articles about saving and making sure you follow the tips that you see. Start small, don’t force yourself to save a huge amount at once. Start with the lowest possible saving that you can set aside, every week or month, increase that amount until you find your steady saving pace.
3. Spending Diet
If you can go for a meal diet, you can also go into a spending diet. Try to limit yourself on how much you spend on a day. Just cutting your budget a bit would definitely not hurt you. Every payday, you can set aside time to budget your money properly. Sit down and list all the bills that you have to, the money that is left after paying the bills is your remaining monthly budget. Divide this amount to the remaining days until the next payday. The amount that you will get will be your daily budget. You have to force yourself to stay within that budget every day, or else you’ll run out of money even before the next payday comes.
4. Trick Yourself
Sometimes, in order not to buy something, you need to think of something else that will distract you from the “WANT” that you are itching to buy. Do you want to buy the new smart phone that Samsung released? Or do you want to buy the new iPhone? The problem is, you just bought a new phone months before and you are still paying for it with your credit card. What you can do is trick yourself into thinking that you have the best phone and you don’t need a new one. Find a great app and allow yourself to get addicted to it. In time, you will realize that you don’t need a new phone, you are contented with your current phone after all.
5. Picture A New Lifestyle
If you want something, you need to picture it in your mind and the steps on how you are going to get there. You can also have a dream board or a dream notebook. Write everything you want to achieve and buy in the future. The best houses with superb views, a yatch, your own pent house, a sports car? Anything you want, write it down, or better yet, find a photo and stick it up your dream board. Now, everytime you are itching to buy something that you don’t really need, look at your dream board, tell yourself that if you give in to your impulse and bought what you wanted now, you’ll be a step farther to your dreams.
I hope these tips were able to help you start your saving journey. Stay tuned as we cook up more tips for you.