Four Tips To Kick-Start Your Savings
Saving might sound simple and basic, but it can prove to be the exact opposite. Saving money is often attached to major moments in life like buying a home, buying a car, paying the kids tuition or going on a family trip.
However, there are smaller goals that require saving like getting a new phone, a new hairdo or even for attending to your wardrobe needs. These are called “dreams” and “goals” for a reason. They require hard work, drive and, of course, money. And that, in turn, means saving.
Here are four tips on how to kick-start your savings:
Set a goal
Goals matter, whether you are saving for new shoes, a new bag or even a weekend trip. Studies show that people are more likely to save when they have a specific, achievable goal in mind. It is advisable to write down your goals; that way, it is easier to achieve them.
Build an emergency fund
It is very important to have an account for short-term needs. That way, you are covered and do not in panic for unexpected expenses, like medical bills or phone repairs. Try to save enough to cover at least half of your expenses.
Hold yourself accountable
Saving is not something you announce on social media or to your neighbours. People believe that one is more likely to stick to savings plans when they announce them. This is incorrect. However, you can tell a trusted friend about your plans so that you have someone to cheer you on.
This is the golden rule. It’s okay to have a “cheat day” or a splurge, like buying those shoes you’ve been longing for or eating lunch and dinner out, as long you still have room in your budget.