1. Create a budget
Manage your money through creating a budget. The most important aspect of saving is to track your income and expenses. This not only allows you to better understand where your money is going but ensures you don’t overspend. This enables you to track your money better and make sure that you’re not spending more than you’re making.
There are many different apps and sites you can use to create your own personalised budget. I use excel for mine and create monthly spreadsheets using the ‘personal budget’ template.
2. Find ways to cut spending
As much as everyone enjoys the finer things in life, sometimes we need ways to cut back on our expenses. This can be done in a few ways including cutting out non-essentials and reducing fixed monthly expenses.
For example, reducing non-essential expenses could be spending the night in, instead of going out. Similarly, reducing fixed expenses could be to compare mobile plans and maybe switch to a cheaper option. Reducing expenses is just as important as earning money in terms of savings.
3. Set goals
It is important to set goals and objectives. Goals help motivate us, making us more likely to stick to a routine and ultimately save more. These goals can short-term or long-term.
It can be as simple as wanting to put away $100 in a saving account per month or to save up a certain amount to go on your dream holiday or buy your dream car. Or a more long-term goal could be to save for your child’s education.
4. Watch your savings Grow
On top of setting goals, watching your savings grow can be just as motivating, if not more. Watching your savings can be very rewarding as you can see the planning and potential sacrifices you made pay off.
Saving money can be challenging, so it is important to look back on the progress you’ve made and really see how far you have come from when you started.
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