How A Savings Plan Can Simplify Your Life
When you decide to start saving, you can often find yourself start off really well. One minute your savings account was empty, and the next it’s flourishing. But it doesn’t always stay like that. Your efforts might have started out well, but before long you may find yourself slipping back into your old spending habits, or struggle to put more aside.check out my disclaimer policy
Whether you’re looking to improve your financial prospects, ensure that your safe in old age, or get some money together for something special, here are a few tips on how to start saving more.
Simplify Your Income
First of all, you’re going to really know your income and outgoings. If you’re serious about putting more money away for a rainy day, you need to know exactly what money you have available to save in the first place. You should be able to work out what your monthly earnings are, and how much you spend on an average month, to then see what you have potentially have left to save each month.
Know What You’re Saving For
Next, you’re going to want to know exactly why you’re saving. Whether it’s to have a comfortable cushion of money should you need it, for a new car, or for old age, you need to ensure that your motive is really something you want and can take seriously. Knowing that you need to have backup, a reliable car, or a bit about retirement statistics could be all you need to feel the fear of messing up and making sure that money gets saved each month.
Keep A Change Pot
Sometimes, you can even save a lot more when you’re not trying. So, you’re going to want to have some sort of change pot that can help you with your savings plan. When you next buy a coffee or get groceries, pop the change in your change pot. Then, at the end of each month, deposit the money into your saving account. You could find that you top your savings account up by as much as $100 each month by doing this.
Have It Automated
If you allow yourself to choose how much you save each month, you might find excuses for why you need more of an allowance one month, therefore can’t save as much. It’s a slippery slope for sure. So, instead of manually making savings, have your savings plan automated. If you have a percentage of your monthly income transferred into savings every month, it should mean that you don’t even notice that the money is missing.
We all work well when we know we’ve got a reward coming. So, you might find that incentivizing yourself for a savings plan works incredibly well for you. Whether you have a $1,000 target and allow yourself to buy new jeans, or treat yourself to designer sunglasses when you get to $5,000, you may discover that you’re racing to get that money saved more than if the incentive wasn’t there. It might seem counterproductive, but it could mean that you get more saved in a shorter space of time.
You should always have a savings plan in place because you never know when you will need it!