How to start saving for a rainy day
Financial freedom is not easily achievable, but it is worth the effort. You can instantly gain more control over your finances by starting to save regularly.
Here are some powerful tips to help you make the change from being a big spender to being a big saver.1. No excuses
In order to change your bad spending habits and become more responsible with your money, you’ve got to stick to a “no excuses” policy.
Determine an amount to be saved each month and see to it that you always put aside the said amount. No excuses are allowed anymore. Make saving a priority and you will instantly change your mentality.
2. Save change
Every money saved is money earned. Don’t disconsider change, thinking that it is to insignificant to make a difference in your financial situation. Small change can make a big difference when you draw the line. Save all your loose change in a piggy bank or jar, then, when it adds up, deposit the coins in a bank account and earn interest.
3. Save the money you used to pay off your loans
After you’ve finished paying off a loan, continue paying the same amount into your savings account. You won’t even feel it’s gone, since you were already used to living without that amount of cash.
4. Set clear saving goals
You’re much more determined to save when you have several good reasons to do so. Identify your main financial goals, write them down, and motivate yourself to achieve them sooner than expected.
5. Set up automatic savings
You’re much more likely to spend the money that could go into your savings account if you don’t set up automatic deposits. Make saving automatic – have a certain amount withdrawn from your regular account and transferred to your savings account every month, before you have the opportunity to spend it.
6. Refrain from buying on impulse
Impulse buys are partially responsible for our financial troubles. Don’t make emotional decisions when going shopping, but try to stay in touch with your real financial possibilities. Before buying something you could do without, ask yourself: Can I really afford this? It also helps to postpone buying something for 48 hours or more, to see if you still want to make the purchase.
7. Give yourself an allowance
Set a certain weekly allowance in order to stick to a certain budget. Give yourself enough money to live comfortably, yet not enough to be careless.