Saving money isn’t quite as difficult as you might think. In fact, the trickiest part of all is in making those first few steps and turning your savings plan into a habit you stick to. But with so many things to consider, there are a lot of big changes that can intimidate you and keep you from living a more cost-effective life.
But with these smaller and more manageable steps, you’ll be able to set a savings plan that’s easy to stick to and helps you achieve those long-term goals.
Plan your budget out
Every long-term plan needs a budget to keep you on track and living within your means. There’s a fine line to walk here, as being too stringent with your money will give you no quality of life at all (no one expects you to go without the occasional treat or home comfort here).
Instead, try to plan out a doable budget, that allows you a little fun between all of that saving. Set a specific amount to put aside each month and do your best to stick to it.
Look at ways to grow money for the future
Sometimes, the small steps needed to achieve long-term savings goals aren’t for us, they’re for our children. After all, planning for the future is a stressful thing in life, and what better way to support your child than by giving them a little nest egg to make their dreams come true?
Looking into things like Junior ISAs when you start saving can really help you to focus on why you’re doing this, and motivate you to regularly contribute to it for the sake of your kids.
Set specific savings goals
Asking yourself where you want to be financially ten years from now is destined to fail. It’s far too overwhelming. Instead of doing this, try and set out some much smaller and more achievable goals that play into a long-term savings plan.
A good first goal for new savers is to try and get enough money to cover your living expenses for 6 months in the event of an emergency. In no time, you’ll have a decent amount of money in your account, and feel proud of yourself for doing so! Once that’s achieved, aim for something a little bigger, like a holiday, or a set amount that you’re determined to reach in the next few years.
Record your spending for at least one month
If you can be strict about your spending habits and meticulously record your outgoings, it’s more likely that you’ll stick to your budget. Why? Because when we see how much cash we waste on a monthly basis, it can be rather alarming!
Think of it as a wake-up call that’ll set you on a better path to a financially sound future. You don’t need to do this forever. After just a few months, you’ll see the benefits of saving for yourself, and get long-term benefits of saving money because you want to, instead of feeling as if you have to.
