If you do not have savings yet, or if you haven’t saved enough, now is the time to start doing so. This, however, is not something easy to do. Oftentimes, what happens is you start saving and then after a few weeks or months, you start going back to your old ways and spend all the money you have.
Saving can be challenging but it does not have to be difficult. Once you are determined to start, all you need to do is follow through with your plan. However, you also need to change your behavior and understanding towards/about saving. If you keep on planning without actually doing something about it, nothing good will come out of the whole thing. If you keep thinking, “It’s only money,” then you won’t achieve anything significant. You need to embrace the right attitude if you really want to save.
Simple and practical tips for saving
There are tips you can follow but this won’t work if you are not committed to doing them. So, before you do any of these, change your mindset first. These are simple and practical tips; it should be easy for you to do them — especially if you’re determined to turn your financial life around.
- Come up with your goal — the more specific, the better.
If you have a specific goal, you will have something that will inspire you to do your best to stick to the plan. If you have a specific goal, you will know what you need to do and how much you need to save. For example, if your goal is to buy your own house in a year’s time, then you’ll know exactly what you need to do and how much you need to save.
A long-term savings plan, however, should not focus on just one goal. So, set other goals aside from that house ownership. Maybe you can add your weekly and monthly expenses (i.e. food, tuition, house rent, and other essential stuff) as well as miscellaneous items (such as transportation allowance, entertainment expenses, and credit card payments).
- After setting specific goals, you need to sit down and come up with a realistic budget. Don’t include unnecessary expenses; stick only to your weekly and monthly expenses (items you identified as your goals). Every time you find yourself adding something in the budget list, ask yourself questions like, “Is this important?” and “Do I need this?”
- Adopt the “pay yourself first” attitude. What this means is that before spending, set aside some amount for your savings. How much you save is entirely up to you, but do not forget to consider your goals. You can choose to set aside 5%, or 10%, or more of your salary. You can also start with small amounts and then gradually increase it as you become more comfortable and dedicated to the process.
- Live a simple lifestyle. Constantly remind yourself that you don’t need to buy expensive branded stuff. Cut back on the Frappuccino or milk tea, on the weekend parties and out-of-town trips, and minimize restaurant dinners. When you go to the grocery, pick and buy only what you need and what’s on your list. Do not spend impulsively.
Live according to your means so you won’t be forced to spend more than you can. Being open to changing your lifestyle will be a big help.
- When buying something you need, take some time to compare prices. You can save a lot by going for the lesser-priced brand. Of course, you also need to consider the product’s quality. Choose items that are not only of good quality but also those that are reasonably priced.
- Find somebody who can save with you — your friends, your partner or boyfriend, your family. Having someone on the same journey will make it easier and fun. You can even have some sort of a contest and come up with a special prize for the one who saves the most at the end of the week or month. You can also celebrate together every time you reach a savings milestone.
- Use your savings for investments. This is one of the best ways to make your money grow.
- Choose the right savings outlet for you. There are a lot of choices open for you, but if you want a simple but sure option, you should sign for a membership at FICCO. That first step is, in itself, already a guarantee that you’re doing something good for your financial future.