At the beginning of each month you have the best intentions, but somehow you always spend most of your salary. The truth is that saving money is not easy. You will have to break bad habits and learn new strategies. are you done with pending money aimlessly? Then you’ve come to the right place.
1. Be Honest About Your Bad Habits
The most important habit you can teach yourself is to dare to face reality. This is not to make you feel bad about yourself. On the contrary, be proud of the fact that you are honest. You must first be aware of your bad habits in order to be able to deal with them.
2. Determine Your Needs and Wishes
Make a list of things you really need, for example: mobile phone, groceries, shelter. Then make a list of items you’d like to have, but are not vital, such as expensive shoes, the latest smartphone, etc.
Don’t buy everything on your wish list right away. First choose one item and determine your budget. Save the amount and reward yourself as soon as you reach your goal with an item from your wish list.
3. Learn to Set SMART Goals
Aimless saving doesn’t work. Just saying, for example, that you want to retire with peace of mind is not enough. You have to set SMART goals, so that you have concrete goals to pursue. “I want to be rich” or “I want to be a millionaire” is not SMART. But “I want to save 500,000 euros over the next 10 years” is SMART.
4. Use Tools to Keep Track of Your Spending
If you don’t manage your money well, you’ll always spend it badly. The goal is to keep your spending as low as possible and at the same time earn a high income. Maybe you don’t look at your finances often enough. Because of this, you may pay too much for all kinds of services. Use an app to keep track of your expenses and calculate what you spend each month.
5. Start Saving Automatically
Stop relying on your own initiative to save money, this hasn’t yielded you much so far. But don’t worry, all people make mistakes. Give yourself a helping hand and create an automatic budget, for example by having your money automatically transferred to different current or savings accounts. This will make it harder for you to withdraw money. And your money is automatically set aside as soon as your salary arrives.
6. Be Economical
It’s okay to buy things that make you happy. But if you’re left with too little savings, perhaps a different approach is required. Economics is not a black and white issue, there are different levels of thrift. For example, temporarily cancel streaming services such as Netflix and watch free videos on YouTube.
7. Keep an Eye on Your Finances
Use an app to check your finances on a daily or weekly basis to keep an overview and make saving easier.
8. Use Coupons Everywhere
Make a habit of saving as much money as possible with discount vouchers and pay attention to the offers when shopping. Even if you only manage to save €5, it’s a bonus.
9. Bring Your Own Lunch
A tenner for a meal might not seem expensive, maybe even a bargain. But if you do this 5 times a week, these meals will suddenly cost you €200 a month. So make a habit of bringing your own lunch to work.
10. Stick to the 30-Day Rule
Have you ever bought anything and regretted it a few days later? Then this rule is for you. Postpone a new purchase for 30 days. If you still want it after that, buy it. That way you avoid unnecessary expenses.