Unfortunately, money doesn’t grow on trees, so a savings plan is absolutely crucial. If you’re struggling financially then saving may feel like a pipe dream, but there are always small ways that you can improve your economic circumstances over time.
- Pinpoint your goals. Having specific saving goals can help improve your motivation and keep you on track financially. Make a list of exactly what you’d like to save for, whether it’s a retirement fund, your child’s college tuition or a big family vacation. Make a timeline for when you hope to achieve your savings goal and set a schedule for payments.
- Track your spending. Keep hold of your receipts and note down everything you spend money on for a week. You may find that your money is being spent unnecessarily and that you could easily do without certain purchases. Your morning latte purchase will be a good place to start!
- Pay with cash. It’s easy to lose track of how much money you’re parting with if you’re paying with plastic. Create a budget, and then draw a certain amount of cash out at the beginning of the week to fit your budget. Avoid spending anything other than the cash in your wallet.
- Eat in. Eating meals out is a nice luxury, but it could be making a major dent in your budget if you’re trying to save money. Experiment with new recipes and take a packed lunch with you to work.
- Look at ways to lower your bills. If your bills are swallowing up too much of your income, experiment with new ways to lower your costs. Try conserving electricity and water in the home to lower your household bills, and compare the costs of internet and phone providers to save money on your daily communication expenses.