Suck at saving? You’re not alone. Many people struggle to find the motivation and willpower to save up money. This struggle can have a negative impact in the long run – it can often mean relying on loans to pay for expensive necessities and emergencies, which can cost you a lot more money in interest. You could also find yourself putting off goals like getting married or getting on the property ladder.
Anyone can become a better saver – it may simply require taking more stringent measures to ensure that you’re contributing money each money and to ensure that your savings are protected. Here are just a few ways to become a better saver.
Have clear savings goals
Without a clear savings goal, you’re more likely to dip into your savings for unwanted reasons or skip contributions. When you have a clear goal such as a vacation or home improvements or a wedding, you can plan out how much it will cost and set a deadline, contributing a minimum contribution each month. It’s worth having a separate savings account for emergencies that you should try to keep topped up.
Consider hiring a financial planner
There are lots of ways to save up money more quickly from choosing the right savings account to trying out new forms of investment. Being able to save up money more quickly could help you to stay motivated towards your goals. To access the right methods of saving/investing, it can be worth seeking out financial advice. The likes of this Thinking Big Financial website provides such financial advice. Such expertise can often be worthwhile investing in when pursuing large savings goals, as well as dealing with other financial challenges.
Restrict access to your savings
If you’re constantly tempted to dip into your savings, consider finding a way of restricting access. There are all kinds of ways to restrict access to savings. These include:
· Collecting cash in a jar/bottle/piggy bank – the only way to access this cash is to break into the container.
· Using a notice savings account that requires an advance notice of 30 to 90 days before you can access your savings (not suitable for emergency savings).
· Using a savings account that charges penalties for withdrawing money.
· Giving your card to your savings to a partner/family member who you trust.
· Asking a partner/family member you trust to take out a savings account in their name and putting money in there – only they can withdraw money from the account.
If you want to save a certain amount each month, you also need to put a cap on your spending. By establishing a weekly or monthly budget, you can control exactly how much you spend so that you’ve always got enough money to contribute to your savings. You can even spend less to save more if you want to reach your savings goals faster. A number of budgeting apps can help you to set a budget – this guide at Nerdwallet compares a few examples.