Make saving a habit

masterroshi (57)in #finance • 6 years ago

Saving is a game of numbers

The hardest part about saving for most people is turning it from a whim to a habit that one does on a consistent basis. A lot of that is because saving can run into turbulence and the plans we had for saving can go up in smoke. In order to prevent this we need to find ways to increase our opportunities to save so we can have diverse sources of savings funds. In investing diversity is one of the most important principles to balancing risk so, it would be a good principle to have when building savings plans.

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Get creative with how you save

Saving money habitually can be made pretty easy if you choose to take your time to make smart choices. One good choice is to cut out some of the more irrelevant things in your life for a little while to supplement your savings. Cutting out expenses like cable boost your savings by up to $100 a month and you could simply have internet to stream television shows for free or negligible costs. I choose to use Netflix coupled with a variety of my favorite streaming sites like Watch episode series For stuff I can’t get with the paid service. When thinking of cord cutting another good idea would be to drop that house phone line (if you have one),because if you have a cell phone there is no need for an expensive landline.

Another way to channel your creativity into saving money is to use your network as a support system. Using your network can provide you with income opportunities that you may have not noticed. I like to invite my friends over about once a month to have a potluck dinner where we all share the burden of food costs. This type of function allows people to not only refrain from going out buying expensive food at social events but also lends them the ability to save leftovers for a few subsequent meals. Potlucks go well with the strategy of cooking at home to save money because it makes the activity a community thing. Networks are also good to gather so that if you have a personal hustle, then you will have a ready client base. I suggest working on your cooking skills and inviting people over for affordable paid dinner parties. Such a hobby could lead to catering gigs when your friends want you to cook at their birthday or other event.

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Be real with yourself

When building a savings habit we must really be aware of the effect our own perceptions and emotions have on our spending habits. Are you an impulse buyer; that sees a “good deal” and just cant pass it up? If so then you should consider making the 48 hour rule a mandatory part of your spending. With the 48 hour rule you can gain perspective and see whether on not the purchase you are about to make is something you really need. The marketing machine of the internet and retail stores has your psychology fully in mind when showing you products. So it is good to remember that if you didn't set out to buy it then take 48 hours to consider the purchase. This helps dispel some effects that the psychological marketing may have had on your decision making ability.

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This is the most rewarding habit

Habits take time to build up but this is the only habit that pays you while you are building it. If you choose to start saving the rewards are literally immediate, it is instant gratification at its best. When i first began saving I ran into many roadblocks that caused me to spend my savings or reduce the amount I am saving. Eventually I learned that the things I am spending my money on are directly affecting my savings and if I didn't get creative I would be broke right now. Don’t be like the majority of americans who have less than $500 saved up and complain about how hard it is to save. Saving an be done on any income level as long as you choose the longterm over the short. Join our mailing list if you are really interested in learning how to save money and become financially free.