When you want to save more money but aren’t sure how to go about doing so, that first initial step can feel too immense to take. But with a few simple tips, you can get on the path to a better financial figure. Here’s how you can make those changes today.
Specify what you’re saving for
Put that image of the first deposit on a home or that new car you’re dreaming of as clearly as you can in your own head. Like anything in life, focusing on the end goal can motivate you to keep at it and save more. Whether you’re looking into companies like Wealthify to explore ways you can transfer funds into a tax-efficient ISA or you’re doing it alone through your own bank account, resist the urge to save ‘just because’ and instead give yourself that clear source of motivation.
Reduce your outgoings
The majority of your savings won’t be accrued through a side hustle but instead, they’ll come from looking at your expenditure and reassessing your monthly outgoings. Do you ever go to that gym you’ve been paying for each month? Or could you get the same exercise with a simple walk?
Are you paying for a wide range of streaming services you never really use? Can you take lunch to work instead of making that dash to the nearest outlet to spend more money than you need to?
All of these things combined lead to a shocking amount of spending. And if you keep an eye on exactly how much you spend each month, it generates a rough annual estimate in your head that could be just sitting in your bank account instead.
Budget, budget, budget
No one likes to budget their spending, mainly because people associate it with having to go without some of life’s creature comforts. However, if you can learn to think of your budgeting as something that keeps you on track and is more of a reflection of your lifestyle, it can be far easier to keep it going.
A good budget allows you to still enjoy your life while also ensuring that your future is less stressful. It’s about focusing on your long-term goals, and reminding yourself that your future comforts outweigh your need for that expensive coffee or that unnecessary impulse buy.
Boost your own finance knowledge
No one expects you to become an overnight expert in your finances and where to invest them. In fact, some of the most successful investors are people who simply let the people they’ve hired to look after their investments do their jobs without any interference.
But developing a better understanding of some general investment principles through financial literacy skills and research into them may serve you well in the years to come.
Planning ahead and being cautious with your money is essential to a sound savings plan. Like all things in life, there’s work to be done in the present to make that comfortable financial future happen. A better financial future always begins with that first initial step into planning for it. By sticking to these tips and insights, you’ll continue to save and accrue the funds needed to make that future everything you want it to be and more.