When it comes to saving money, the best thing to do is to get started, no matter how small or seemingly insignificant and then build it up over time! Remember, you got to be in it to win it. Being a successful saver is a possibility for you, if you get started implementing these below steps.
How to start saving more money:
1. Create a savings goal
When we set ourselves goals, not only does it help us calculate if our goal is realistic within the time frame set, but it also keeps us motivated. The emotional part of saving is just as important as the practical part.
Think about how much money you want to save, what you are saving for, and when you need the money. E.g. I want to save £1,000 in 4 months to go on a summer holiday to Ibiza.
2. Work savings into your monthly budget
Every month (or week) when you get paid, plan how you are going to spend your money – this spending plan includes money for bills, money for monthly spending AND the money you pay your future self (your savings!).
We have a tendency to spend money throughout the month and ‘save what is left over’ but usually there is not much left. Having a dedicated area in your budget helps you prioritise your savings and make a commitment to your future self.
I have a free downloadable monthly spending planner here that includes a section for your financial goals – https://mindmoneysoul.activehosted.com/f/1
3. Open a savings account
Keeping your savings in your current account can be confusing for your brain – it gets tiring constantly doing the mental math of “is this money for my saving goal or for my bills?”. Open up a dedicated savings account for your savings, and reduce the risk of accidentally spending this money and increase the chances of hitting your goal.
4. Start small and build up the habit of saving
“Don’t think about the whole staircase just look at the one step ahead” – Martin Luther King, Jr
It can be so overwhelming to look at a big goal e.g. saving for a house deposit, and think “how on earth am I going to save £30,000 when I currently have £0 in savings” . Change the focus from the end goal, to making steady and sustainable progress. Take one step at a time, and know that every £1 you save takes you closer to reaching your goal. Everyone has to start somewhere and don’t let fear run the show.
5. Talk positively about saving money
Become aware of the language you use towards money. Are you always telling yourself you aren’t a good saver, you always have struggled, or that you are bad with money?
Words are powerful and introducing positive language about saving and how it can improve your life will have a huge impact on your ability to save more. The more confident you feel in your ability to manage money well, the better you will be when it comes to saving.
Time to get excited about starting your savings journey!