As someone who holds a degree in Financial Planning, I am constantly aware of the money mistakes people make that I was warned about during my studies. The truth is; saving money really isn’t that hard. There are steps you can take that basically guarantee you save.
Create Saving Goals
Set goals for yourself. Do you want $3,000 put away for travel? You’ll become addicted to watching your saving accounts grow and reach your goals. This is how saving can actually become fun – when you have something to work toward.
Track Your Spending
You really only need to do this for one month. This is to discover how much you’re spending on food, eating out, shopping, etc. From this, you can determine areas you can cut back on and how much you should be spending on these things. It’s easy to eat out one less time a week, and pass up on one of many shopping sprees a month. By being aware of your spending, you’ll be more conscious before swiping your credit card.
Make it Automatic
By setting up automatic savings, it becomes thoughtless. The reason many have such a hard time with saving is because its hard for them to take a chunk of their money and send it away to a savings account when they view it as spendable income. But, if you make it so the money automatically transfers on the 1st, its gone and you’re left with your real spendable allowance.