There’s always a good reason to save money, whether you’re planning a vacation, or have decided to make a bigger purchase like finally buying your dream home. Then there’s the safety net of having some money put aside in case of emergencies, which is something everyone should remember to do. However, despite all of the great reasons to make an effort to save, a lot of people can still struggle to do it. It could be due to a lower income, or simply a lack of discipline – whatever the reason you’re struggling to meet your savings goals, here are some tips that you need to know to succeed.
1. Get a Separate Savings Account
If you want to keep track of your progress and avoid accidentally spending your savings, make sure you open a separate savings account with your bank. Being able to see your savings increase will help to keep you motivated, but keeping them away from your main bank account will make it easier to determine how much you can spend on general living expenses each month. If you want to make it simpler to stick to your budget, open another account that you use to pay your bills, rent/mortgage, so everything is more organized.
2. Set Realistic Saving Goals
Another common mistake people make when trying to save is thinking that they can afford to put a lot of money away each month. The reality is you’re likely to spend more on general living expenses like food, socializing, and even transportation each month that you might realize. Although you might be keen to save a lot of money, remember to be realistic about what you can afford to put aside each month. Otherwise, you’ll only end up dipping into your savings at the end of the month to get you through to the next pay check, and you’ll feel disappointed.
3. Find Deals and Coupons
If you want to cut down your spending even more, but don’t want to lose out on some of the luxuries in life, take the time to find deals and coupons online. Use discount codes and find things like this eBay coupon for a great way to save money on treating yourself as well as on everyday items.
4. Socialize at Home
Everyone needs to spend time with friends and family, but when you’re trying to save money, sometimes you feel guilty for spending money on going out for dinner, drinks or even going to the movies. Just because you’re saving doesn’t mean you have to become a hermit, instead simply host your friends and relatives at your place. Invite them to dinner, drinks, or a cup of coffee on a Saturday morning so you can still catch up, but you’re not breaking your budget. If you still feel the need to get out of the house, choose to find free things to do in town, like a museum, art gallery, or a walk in the park.
Saving money can be a challenge, but make sure you’re using these four tips to give you the best chance of success.