Sometimes it feels almost impossible to put some money away. For some people, the earnings for the previous month are already distant memories by the time the next pay day comes around. This is why many people have to borrow moneyer use a credit card in order to deal with even with the smallest emergencies. However, with the ailing economic outlook it is now more vital than ever to start putting away something right now. Here is how you can do this.
Create a Reasonable Saving Plan
It is not just enough to desire to have savings. You need to have a reasonable plan in place to achieve your desired savings goal. This starts by mapping out a realistic amount to put away each month. If you think about setting aside $100 every month, you’ll have $1200 at the end of a year and $6000 saved in just five years. When you have settled on a reasonable amount to put away, set up direct debit into a savings account to ensure it is enforce. When you begin to feel more comfortable in your newly found savings habit, consider increasing the amount even further.
Use Technology to Your Advantage
Technology today is more pivotal than ever in our everyday life. From solving complex problems at work to drafting a meal plan, there is a tech solution for everything. Managing your finances is not left out. There are many apps that allow you to control your money by working out exactly how much you can afford to save with each month. You can use technology to control how much you spend and then move any excesses into already designated accounts automatically. With some of the technologies available today, you can also set aside a weekly budget based on your past spending habits. There are personal limiters in place to ensure you don’t go beyond the set budget. Find the technology that appeals to you the most and start saving. Use shopping online to your advantage to save you even more.
Move Cash Immediately After Payday
The days following payday are when you are at your most loose with your finances. You are less likely to deeply consider financial decisions at this time which is why you should consider setting up direct debit to move your savings amount as fast as possible. If you wait to see what is left by the end of the month, you may never be able to put anything away. Automate the process and you have a higher chance of success.
Decide Your Financial Goals
You will be able to save more if you know your financial goals ahead of time. When there are goals noted, you will be able to say no to spending that doesn’t push you forward to meeting them. Spending impulsively on a TV screen is a negative on the surface but it is a positive if you have already made refitting your living room a goal for the year. Spending money on fancy restaurant dates with your spouse may look like a poor way to spend money. However, if you’ve already decided on spending more on “alone time” with your spouse this year, you are spending wisely. How does this help? You will be able to say no to all other “impulsive” spending that doesn’t align with your overall goal, therefore having more money to put away each month.
How do you stretch your dollars further?