How to Save Your Coins: 10 tips
Setting money aside can be really hard for a lot of people, which is why more than 70% of people around the world have less than $1000 in their savings account. If you are still a beginner when it comes to saving money, know that in order to be successful when it comes to saving money, implement a combination of practices and habits that are going to pay off in the future.
Saving money should be ingrained in your everyday life in order to achieve the best results. You can apply the following tips to get started.
- Draw up a budget
A budget helps you to identify the areas in which you spend, and take necessary steps to curtail expenditure on those items that are non-essential and unnecessary. Most of the time we have money one minute and then it suddenly disappears. Budgeting Will Open Your Eyes to where exactly the bulk of your money goes and Will Help Organize Your Spending.
Setting up a budget is going to bring savings the fastest. You should set up a budget for your rent, bills, food, car expenses, and any debt you owe. You should not forget to add entertainment in you budget because that is where most of your money goes. The best way to set a budget is to set a spreadsheet that indicates your inflows and outflows
Once you have set a budget you will be able to set where your money goes and make cuts on unnecessary items.
2. Stop Spending
Most of the time we tend to spend money on unnecessary things. This is usually triggered by our emotions. For example, if we are sad we go shopping. The best way to stop this habit is to find a hobby that replaces shopping. This can be running, baking or reading.
Boredom can also increase your spending, so you should really find a fun activity to keep you occupied.
3. Apply the 30 day rule
If you are a shopaholic, this is probably the best tip for you. The 30-day rule means waiting 30 days before committing to a purchase. When shopping online you can leave things in your cart before you actually buy them. 30 days will give you enough time to think about if you really need to make this purchase. Most of the time people realise that they don’t actually need it anymore.
4. Increase your income
Budgeting helps manage the resources we already have by we cannot budget our way into wealth. Diversifying your income means that you will learn more and therefore save more. Consider freelancing, being an influencer, starting a YouTube channel, tutoring and even rideshare gigs (such as Uber and Bolt).
5. Change your mindset
Saving and increasing your earning potential is going to open your mind to new possibilities that will launch you into action. When you set clear financial goals, you become aware of the decisions you make every day and how those have a positive or negative impact in your longtime plans.
Change how you think and feel about money, forgive yourself for past money mistakes and start over financially. Start seeing money as a tool that can help you improve your life.
6. Make a visual board
This should be a visual reminder of the goals you are working on. If you want to save $1000 for the next 6 months, make a map of how you are gonna get there. Write down the things you are gonna give up to meet that goal. Set a budget and think of ways to lower your expenses.
7. Pay yourself first
If you have read The richest man in Babylon, then you should know that this is the first and most important step to wealth creation. Paying yourself first means setting aside a portion of your income each month. Aim to to save at least 10 to 15 percent of your income. The important part is that you pay yourself first rather than last. Most people pay all of the bills first and then save anything that might be left over. For most people, that method of saving doesn’t really work because nothing is left over to save.
8. Create an Interest-Bearing Account
A chequing account or a regular savings account is no place to save your money. Most of them pay hardly any interest. This is because the bank lends your money to other people when you aren’t using it. Money in a regular bank account might get used often, or you might need to withdraw it quickly, so the bank can’t lend that money out for very long because you might need it.
Interest bearing accounts are types of savings accounts that are usually more restrictive than regular savings accounts, but they pay a lot more interest. Make sure that your bank or credit union is paying you a competitive rate (you can’t negotiate but you can move) and then save away. These types of accounts are usually safe, convenient and their interest rates usually move up as bank interest rates move up.
9. Automate your savings
According to Discover.com, automating your savings can turn your savings deposits into another monthly expense. This can help you prioritize your savings contributions, reducing the temptation to spend those funds without planning ahead.
10. Don’t give up
Remember that each person deals with unique financial circumstances and that some people just have a hard time saving. Define your personal progress, do not compare yourself to other people. You are not in the same lane and life is not a race.
Save those coins and build your wealth!