Everyone struggles with their personal finances from time to time and sometimes it can be difficult to stay on track. With so many bills to keep a handle on, it can be easy to become overwhelmed and many people quickly find themselves falling behind. While it’s easy for this to happen, it’s crucial that you put systems in place to protect yourself from a financial perspective moving forward. One of the best ways to do this is to start saving more and spending less. While this is easier said than done, with the right approach, you can take control of your personal finances again and start living life without financial stress.
Spending money is often a lot more fun than saving money and it is certainly easier. However, if you want to enjoy life to the full and not be under the weight of ever-mounting debt and bills, you need to ensure that you have control over your finances. While many people think that saving money means they need to completely revamp their lifestyle, this is rarely the case. In fact, as any experienced financial planner in Sydney will tell you, saving money typically starts with a few small changes. In the vast majority of cases, minor adjustments to your spending habits can have a major impact on how much you spend each month, allowing you to finally start saving some money so you can enjoy a little more financial freedom moving forward.
Let’s take a look at some simple tips to help you become a savvy saver so you are more financially secure in the future.
Put Goals In Place
Saving is much easier when you have a goal in mind. Just as it is easier to get up and go running early in the morning after you have signed up to run a marathon, it’s much easier to save your money when there is a reason for why you are doing it. Whether you want to save money for a holiday, to update your car, to further your education or you just want X amount in the bank as an emergency fund, writing down that goal and working towards it is key to keeping your savings on track.
Eliminate Existing Debt
For many people, it can be difficult to motivate themselves to save when they know that they already have a massive amount of debt that they need to pay off. Carrying the burden of debt can be difficult so be sure to do everything that you can to clear that debt first. Once you have eradicated your debt, simply start saving whatever money you were previously paying towards it and soon you will have a decent nest egg stashed away for you to do what you want with down the line.
Set Up A Direct Debit
Contact your bank and set up an automatic direct debit so that money comes out of your account and goes into your savings as soon as you get paid. Having to manually do this yourself can often result in the money being swallowed up with bills or you spending it before you have a chance to set it aside. Even if it’s just twenty or fifty dollars, committing to saving a little bit from each paycheque will help to get the ball rolling and encourage you to stay on track with your savings goals.
Make Some Sacrifices
If you really want to save money, you will need to make some small sacrifices. Minor changes such as packing a lunch for work or school, making your coffee at home rather than buying it at the local cafe, swapping your weekly meal out for a cheaper takeaway, or taking a staycation rather than going overseas can have a huge impact on your savings over time. These small sacrifices might be tough in the beginning, however, over a few weeks, you will quickly start to notice your savings increasing which in turn will motivate you to keep going.
Create A Reward System
Making sacrifices and being diligent with your spending can get old over time. To ensure that you don’t give up on your plan to save more, create a reward system. For example, for every thousand dollars you save, allow yourself to take one hundred dollars to spend on yourself as a reward. While it might sound counterintuitive to spend some of what you have saved this approach is often very effective as you get rewarded throughout your efforts and not just at the very end.
Become A Savvy Saver And Start Looking To The Future With More Confidence
Having some savings in your back pocket can help to take the pressure off when it comes to managing your personal finances, allowing you to look to the future with more confidence. Follow the tips outlined above and soon you will see your savings balance increase, allowing you to start planning ahead without as much financial stress as time goes on.