It is always easier to spend, rather than save. It’s so easy to give into the temptation to spend money on new clothes that you don’t need or eating out when you have leftovers in the fridge. However, once the excitement of brunch wears off and your piggy bank is empty, you may start thinking differently about savings.
Saving can be fun, easy and rewarding if you follow this simple plan:
- Set Your Goals Decide what you’re saving for and how much it will cost. Then, you can figure out how much you have to save and for how long. For example, if you want to buy new patio furniture that costs $150, you could put away $50 every month, and it will only take you 3 months to save enough for the new furniture. Make your savings goals and stick to them!
- Assign Your Money Whenever you receive money, divide it into three categories: Save, Spend and Share. You can spend a set amount of money on the things you want to buy right away. Sharing with others – buying gifts or giving to a worthy cause – is important. Saving for big things or more expensive things later is a great way to reach your savings goals. Always put money in savings first.
- Track Your Spending Keep a money diary and write down everything you buy, how much it costs and why you bought it. This will teach you about yourself and what kind of saver you are. Don’t feel bad if you aren’t very responsible about your money yet. Keeping track of what you spend is the first step to becoming a super saver!