The aim of this post is to share some tips on how to save the money that makes its way into your bank account.
It took me a while to get into the swing of saving, but once I got going it quickly became a habit. It’s hard to do and pretty boring to think about, but once you get started you’ll find it very satisfying.
Firstly, are you in the right mindset? Do you really want to save money from your monthly wages? If you’re nodding your head then read on.
The best way to stay focused when you’re planning to save money is to set goals. Think about what you want to achieve from saving money. Maybe you’re saving for new shoes, a gift for a friend, a holiday, new fridge or perhaps you have a long-term plan to save for a mortgage. It doesn’t matter what your goals are, you just need to focus on them. I have a short and long-term goal, which is why I have 2 separate savings accounts.
Next up you need to think about organising your bank accounts. The most important thing to do is to is set up a savings account which makes it hard for you to take your money out. In my case, I have to go into the bank with my savings book, request my money and it’s given to me in a cheque. This makes it much harder for me to spend a chunk of my wage on ASOS and then replenish my account with money from my savings. This account is for my long-term goal.
I also have a bank account which is connected to my current account. This is for rainy days and if I need to take money out of it then it’s very easy to transfer it into my current account. I’ve not touched this since I set it up because I want to use it for Christmas shopping.
I now have a quote for you, it’s from the great Warren Buffet – “Do not save what is left after spending, spend what is left after saving.” This is a quote which I think everyone should be aware of before embarking on a journey of saving. With this quote in mind I set up standing orders to transfer money from my current account to both my saving accounts at the start of each month.
Finally, I want to remind you to start small. If you’re setting up a standing order to save each month then choose an amount of money which you know you can afford to go without. Once you become used to this leaving your bank account each month then increase the amount a little more. You will soon find that you can learn to live without that extra cash, your spending habits will adjust and you can sit back and watch your savings stack up.
Do you find it easy to save?
I’m thinking about doing a separate money saving post aimed at students. What do you think?