At the beginning of the year 2020, I set myself a goal to save more money and organise my finances. Being halfway through 2020 already I want to share with you 6 ways that have helped me save more money and it is easier than you think.
You can make saving money a fun and easy process. What I've realised is that its something that doesn't actually require a lot of energy.
1. REVIEW YOUR MONTHLY EXPENSES
Go through your last bank statement and review your monthly outgoings. Cancel anything that you could live without or see if you can downgrade the monthly subscriptions that you aren't using fully i.e Downgrading your Netflix subscription from 4 users to 2 users.
Being aware of your monthly expenses is very important. See if you can free up money from your monthly expenses.
2. HAVE A POSITIVE GOAL
You are more motivated to save money if you have a positive goal in mind that you want to achieve in the long future. This could be as simple as saving for your month trip Asia or just simply creating a fund to pay for your course that you wanted to study. Save to invest in yourself! I never liked the idea of "Saving for a rainy day" because you are saving for a negative goal. i.e losing a job.
Save for something that will benefit you as a person.
3. SAVE A % OF YOUR MONTHLY WAGE
Saving money should not be a stressful process monthly wage and stick to it. I would recommend putting aside 10% of your total net income into your savings pot. Depending on your financial circumstances you could increase or decrease your % just as long as you are comfortable and you can live without this amount.
Saving money should not be a stressful process.
4. AUTOMATE, AUTOMATE AND AUTOMATE
Make it easy for yourself to save money and automate your savings transactions. Set an automatic payment with your bank to transfer your % of your net income into your savings pot. This way you don't even have to think about it and you can just watch your savings pot grow!
The less you think about it the better!
5. PAY YOURSELF FIRST
The first person that you need to pay first isn't your landlord or your house bills, it should be yourself. What I mean is paying a portion of your monthly salary into your savings pot as soon as you get paid. The problem is most of us put money into our savings accounts after we have paid everyone else i.e your landlord, groceries, utility bills and eating and drinking out. By the time you have paid everyone else you often have very little or nothing left for your savings.
You need to reverse this mentality and prioritise yourself first and by doing this you are securing your financial goal first.
6. HAVE A COIN JAR
Money attracts money. So grab a glass jar with a lid from your kitchen and start putting your spare change into this jar and watch it grow over time. I like using a glass jar because I can see my progress and watch my money grow over time. You will be surprised how much you can save by putting in your spare change into a jar.
With every contribution to this jar, you are one step closer to your goal.
Growing your savings post should be a positive and painless experience. By changing your mentality about money and prioritising yourself first is a habit that will boost your wealth.
How do you save your money?