How To Save Money

Since I’ve started working, I have started to get into the habit of saving. So I thought to share with you all, some tips that have and continue to help me to save effectively.

1. Give some money away e.g. to a cause that is close to your heart. This may sound like a juxtaposition, and you may be wondering “if you want to save surely you should keep all your money?” But I have found that giving to a cause, teaches me the importance of generosity and not to be so attached to money. Also through giving naturally you’ll receive more in unexpected ways and unexpected ways does not always mean money back, sometimes it might just be: being in the right place at the right time to hear about an exciting opportunity.

2. Pay yourself. Allocate a certain percentage from your monthly salary to go towards treating yourself. You have worked hard all month, now is the time to treat yourself. But of course, a sensible budget.

3. Have a budget sheet, where you can allocate all your expenses to bills and etc. This way you are in better control of your money.

4. Have a goal, saving “just for the sake of it” can be hard. But once you have a goal as to why your saving, this makes things so much more easier. Especially when you may feel like spending that money, you remind yourself of the goal which helps you exercise self control.

5. Focus on one goal at a time. As humans we tend to be over ambitious, which is great! But I’ve learnt it’s easier to focus on one financial goal at a time, that juggling many. This is because you will have better focus and once you achieve one goal, you can swiftly move on to the next.

6. Create a saving strategy, whether that is saving £800 every month, for 12 months etc. It is easier when you know how much you want to save, let’s say you want to buy a used car that cost £6,000. Ideally each month you should aim to save £500 so in 12 months time you will have £6,000.

7. Make the most out of interest rates e.g. bonuses. There are a lot of good interest rates out there such as the Lifetime ISA and many other ISAs. Research which account works best with your goal.

8. Appreciate how much you have saved so far. Sometimes we want to have saved a certain money so quickly, but life also happens and sometimes it may take longer than expected. Therefore acknowledge and appreciate how far you have come so far and with how much you saved.

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