For the majority of us, saving money is not always easy. While we know the value of saving for the rainy days, doing so requires dedication and discipline. Plus, staying on track with your finances can be challenging.
That’s because there will be unprecedented moments wherein we need to shell out a significant sum. As such, we have listed seven actionable tips that can motivate you to save up and fix your finances.
1. Find your “why”
Defining your “why” is an excellent way to motivate yourself to save up.
Perhaps you want to build your emergency fund. Knowing your “why” means that you will need to identify how much you will need to save and how you can make that happen.
Another reason you would want to save is that you want to have your dream house. From there, you can ask your state’s housing authority about financing options.
You may also want to save up because to start your own business. Aside from bootstrapping, you may also want to check out different venture capitalists’ portfolios. An excellent example of this would be Michelle Dipp’s investments, which lists down the life science startups that the female leader in VC investment is supporting.
Regardless, you must define your “why” before you start saving up. That way, you can also identify what actions you need to take and habits you need to build.
2. Write down your savings goal
They say that people who write down their goals are a thousand times more likely to achieve them.
That’s why you need to write down your financial goals and commit to them. Writing your goals down is vital if you want to succeed. How you write these down is up to you.
This allows you to visualize your goal better. So every time you want to spend money on that cup of coffee or that latest gadget, you’ll have to think twice about it. That’s because doing so could mean taking a step away from your financial goals.
3. Come up with savings milestones
Some individuals lose the motivation to save early on because they set the bar high for themselves.
Sure, saving thousands of dollars as a down payment for your dream house may seem far-fetched. As such, it would be better to break them down into achievable milestones.
Instead of saying, “My goal is to save $70,000 in two years,” perhaps you can say, “Finish four $10,000-worth commissioned art this year.” Doing so shifts your focus on the tasks you need to do instead of contemplating that your money goals are impossible.
Whenever you reach this milestone, celebrate your progress. By setting smaller milestones, you won’t be scared of achieving that goal that you actually might want to avoid. Ideally, you want your goal to be manageable. That way, you’ll feel that it is more attainable in the long run.
4. Tell someone about your goal
Another great way to stay motivated is to talk to someone you trust, telling them of your financial goal. That way, you’ll have someone accountable for your goals and encourage you to achieve them when you need some encouragement.
Ask this person to remind you while you started in the first place, and regularly check your progress. This helps you stay on track and motivate you.
5. Keep a savings log
If you think your monthly budget and expenses make you feel like spending a lot, make sure you reverse this process and keep a savings log instead.
Every single time you deposit savings in your bank account, make sure that you document it. Log in the date, as well as the amount you’ve saved.
That way, you can regularly monitor your savings as you watch your money grow in front of you.
6. Keep your funds separate
While keeping all your savings in one place might be tempting, every goal should be held in a separate bank account.
Doing so allows you to achieve two things:
- You can easily track the amount of money you have concerning your financial goal.
- You can keep the temptation to withdraw your money at bay since it’s in a different bank account.
By having separate accounts, tracking your financial progress will become so much easier.
Over to You
Here’s the thing: Achieving your financial goal can be overwhelming and may seem impossible.
As such, you need to break it down into achievable and actionable milestones. It can also help if you build the right habits that are relevant to your financial goals.
That way, you can achieve your money goals in no time.
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Guest Contributor for Led2Win