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How To Have Better Money Habits to Help You Increase Your Savings
Ever since the COVID-19 outbreak happened, we know now that we always have to prepare ourselves for rainy days. Especially when it comes to money. At times like this businesses starts to fail and as much as we do not wish for it to happen, retrenchment & cut-off salaries can happen.. So it is extremely important to have savings.
Now, we always want to save money, but it is frustrating that sometimes we keep spending them instead.
If you are struggling to save money, you are not alone.
The truth is, saving money is not easy. You will have to break bad habits and learn new strategies. Most of them will be simple but will need a huge amount of discipline and focus.
Most people save only when they have planned a trip, or retirement, or a brand new car. Is there a right answer for what you should save for?
Undoubtedly that there will be rainy days and we have to be prepared for it. Like Covid-19, we have to be sure that we will have saved enough for uncertainties that can occur at any time.
So what are some way we can do to ensure we are on the right track on saving money?
The most important habit you can learn is to face reality.
The reason why you haven’t been able to save for a long time is that you have delayed accepting the facts. I get it, it’s not easy to accept that you’re not saving as much as you should. However, it is easier to ignore this and spend the money you could be saving, hoping that maybe you will have enough leftover.
Sometimes what we would like to save and get aside has to make sense. Stop over-budgeting your savings because you will just end up being upset for the fact that you are unable to save the amount you wanted. So, in short, make a realistic budget and goals for your savings.
Understand Your Money Mindset
When you hear “ savings “, what comes to mind?
Do you get excited because you are on track for retirement? Or for you frown knowing because you are unable to spend as much as you want to continue your lifestyle?
This is where you have to practise being disciplined. If you believe that you should spend your money as it comes, ask yourself how this has resulted in the last few years.
Your end goal is to challenge that mindset and create new ones.
Understand Between Your Needs And Wants
It’s okay to like luxury brands, eating out and spending time with friends. The problem is trying to buy everything and going out because you want to keep up with your friends, getting luxuries stuff just for the internet.
It should not be this way. This is where you will have to differentiate your wants & needs.
For example, cell phones, food, house are definitely a need. Then, create your list of wants for items such as high-end shoes, the latest smartphones, the newest air-pods, etc.
You should not buy everything from your wants list immediately. Instead, pick one and create a budget for it,. Save money first and reward yourself with an item from your “ wants “ list once you have reached a saving goal.
Set Smart & Realistic Goals
We all know that saving without intention doesn’t work.
But, stating that you want to retire happy is not enough. You need to set smart and realistic goals.
For example: “ I want to be rich “ is not smart, neither is “ I want to be a millionaire “ But “I want to save $500,000 in the next 10 years “ is smart & realistic.
Be Careful With Your Money
It is okay to use your money to buy things that make you happy.
But if you are not saving enough after cutting your expenses as low as possible while having a high income. The problem is you may not review your finances regularly and properly.
Limit yourself to the amount you are spending. Remember, only get what you truly need.,
Pack Your Lunch
Pack your lunch if possible. This would definitely help you save some money. A $25 groceries shopping for a week instead of $10 for a meal daily.