Saving has become very difficult these days, with rising costs of living, stagnant salaries, and as a result of the pandemic, some have experienced pay cuts and loss of income. We’re saving less than ever.
But take a moment. Think about being your best self- Imagine living your best life.
What do you really want to achieve in this life? What is that life goal? Build a house? Travel the world? Raise a happy family? Start a business? Whatever your goals are, you’re going to have to know how to save money to accomplish any of it.
So buckle up and follow any of these 5 ways to save big every month, it’s time to get serious about this.
1. Analyse your income and expenses
To realistically save, you will need to examine your spending and income each month- write down your income and expenses- all of it, as little as buying roasted corn by the roadside, or groundnut. Take note of your active and passive income as well; there might be more ways to save money than you think.
Recording and analysing your expenses will help to figure out how much you spend monthly; what your expenses are, and when compared to your income, you will know if your expenses are high. You will also know why you can’t save as much as you’d like. The strategy here is to identify non-essentials that you can spend less on, find ways to cut back on your expenses, and be able to save.
2. Set specific saving goals and develop Strategies
One of the best ways to save money is to set a goal. Whatever the goal is, determine how much money you’ll need and what you can realistically save. Having a specific goal and knowing exactly what you are saving for is a way to get motivated.
There are short and long term financial goals. An example of a short term goal is to have a decent emergency reserve in a money market account or to take a professional course or a nice holiday. And a long term goal could be to build a house or save for your child’s education. Whatever your goals are, reaching smaller goals and enjoying the benefits can encourage you to save more for bigger goals.
3. Automate your saving
Automatic saving means there is a process in place to save at regular intervals, whether daily, weekly, or monthly. Setting up your savings to be automatic is the easiest and most effective way to save because this will put extra cash out of sight.
I know most people do this; some set a standing order at the bank, but withdraw before the set date or avoid making funds available for the debit. If you find yourself doing this, go back to No 1, to determine what you can conveniently save.
So if you don’t have your savings automated, go set it up today and forget it!
4. Establish a budget-conscious lifestyle
Budgeting is the process of creating a plan to spend your money. To save more, you will need to spend less. And one great thing about budgeting is that it helps you to be intentional about your money and in doing so; you can be more intentional about saving.
Making a monthly budget and sticking to it, can make you put savings into your budget as an “expense”, with this, it will never be a second thought.
5. Make more money
It is easier to save more money if you are earning more. How can you increase your income? Making more money is important for building wealth. And your wealth is what you save and build. To achieve this, your income needs to support today as well as tomorrow.
Please share your saving strategies in the comment below