Wouldn’t it be great if you could get better with money, saving like a pro, having full peace of mind that your future was going to be comfortable, if not luxurious?
If you want to safeguard your future and live out a life you dream of, you need to make sure you’re saving consistently.
Saving money can also help you in the midst of an emergency, such as a medical bill or an unexpected appliance breakdown. Many people wish they had savings once something happens, but it’s too late at this point.
By making sure you begin saving money now, it’ll become second nature to you.
You’ll have money ready when you need it most, and you won’t have to worry about anything at all!
So, what are a few ways you can incorporate second nature saving into your life? Take a look for 9 tricks you can use:
1. Put Your Change Into A Jar
This is the most simple thing you can do.
It might seem silly, or like it isn’t even worth it, but it can help you to get into the habit of putting money away. If you leave that change alone, you could even build up a nice amount of pocket money.
If you want to do more than just throwing a few small coins into a jar or tin, you could even commit to saving a specific note or coin.
Some people like to save slightly larger notes or coins once they get them, and this money builds up even faster.
Having multiple places you save your cash will help you to feel better about your financial situation, which in turn can encourage you to save even more and stick to your goals in the long run.
Every great action you take has a domino effect, so remember that!
2. Automate Your Savings Each Month
Now let’s talk about saving some bigger money.
Automating your savings each month means you won’t even need to think about that money leaving your account, because you didn’t have the chance to deliberate or ruminate on it.
If you are left to think about whether you should really be putting that much money into your savings, chances are, you won’t save as much.
You might even convince yourself that you’ll save more next week and spend the money instead, only to repeat this pattern and end up saving very little money.
Set up a direct debit so you can automate your savings and it’ll do the world of good for your financial situation!
3. Download Apps That Round Up Your Purchases
There are lots of apps out there that can help you with your financial journey.
There are apps that can help you to track what you are spending, and even apps that can help you to round up your purchases.
For example, if you buy a coffee that costs $2.55, an app will save the remaining 45 cents for you. This can quickly add up, and you won’t even realize it’s happening.
4. Get To Grips With Investing And How You Can Start
Investing is important.
Savings can help you in terms of having money for emergencies and being able to access cash quickly, but really, it’s investing that is going to help you build wealth.
Savings can depreciate over time, whereas investments do not.
You need to make sure you speak to a professional – many beginners like to hire an account manager so they know what they are doing and can feel confident they will make some returns.
That being said, all investing comes with a level of risk, so you need to know what you’re comfortable with in order to be successful.
Over time, the money you invest can compound, and you can have much more money than you started with if you are successful.
Check out this compounding frequency calculator to get an idea of what you could end up with.
5. Have A Great Goal That Makes You Want To Save
Having a goal that makes you want to save should give you a strong enough ‘why’.
If you don’t have a goal, then you probably will squander your money on things that you don’t need. Pure and simple.
Maybe you want to own a house, buy a car, or plan for retirement. Maybe you have multiple goals. Now is the time to set them.
6. Have A Plan In Place So You Know Exactly What You Need To Do
Make sure you figure out the numbers and have a plan in place so you know how much you need to save each week/month and when you’ll reach your goal.
When you have it written down, and you know exactly when you will achieve your goal by, it becomes so much easier and you get less tempted to spend the money you have saved.
7. Pay Yourself First
Paying yourself first can be another great idea.
Nobody is expecting you not to splurge on the odd luxury, or buy the things you really love occasionally. To do this the smart way, pay yourself first.
Giving yourself ‘pocket money’ and then saving and investing the rest of your cash should tide you over and make you feel like you are living well while you save.
8. Have A Budget For Everything
See if having mini budgets for everything works for you.
Some people like to have one large budget, while others find the ‘envelope method’ works wonders. You might have a food budget, an entertainment budget, and so on.
This cash goes in an envelope and you can only spend the cash in the envelope on things associated with it. You can’t take money from food to spend on entertainment, for instance!
9. Have Some Living Expenses Saved Up Too
Having an emergency fund alongside the other savings funds you have will protect you in case of a real emergency. 3-6 months living expenses will give you a much better sense of freedom.