Are you wondering why you can't save money? You’ve tried but it’s just not happening successfully, for you or your Family. You “know” you need to save and you definitely have the intention to but you just keep going off track. What little you do save you have to dip into to spend on unexpected expenses or it feels like you can’t afford to save with your income. In this blog post, I will guide you through 6 steps to overcome your struggle to save money. I've used these 6 steps on myself as well as my clients so I know it will work for you.
Step 1: Start with what you can control
What are you telling yourself about money and savings? Become aware of the beliefs you have about money. Are you telling yourself you can’t save? You can’t afford to. You don’t want to. You don’t need to. It will never happen. Do you feel as though saving is pointless or that saving stops you from having something you want today? Does the gap between the little you have and the amount you need just look and feel too big?
You can influence your thoughts and feelings. Re-frame ‘why can’t I save money’ to something positive such as:
I can start saving money today
I can create good money-saving habits
My savings will grow
I can start small and increase later
I can find the help I need to save successfully
I would feel happier when those savings are there
Then use that positive to support the next six steps for real saving success.
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Step 2: Save Money for a Purpose
Savings need a purpose, all money needs a purpose but when saving it helps to stay motivated and direct the right money to the right place. You are saving to spend on something you may want or need later. That later maybe next week, month, year or 3 years. But it needs a purpose. Spend some time imagining what’s important to you and your family and give that purpose a goal, a name and decide to save toward it.
Step 3: Save For Yourself First
Save before you spend. See saving for yourself as paying yourself and you should be top of your list. Without you, your income and your savings anyone dependent on you also loses out. So put yourself and pay yourself first. Then spend from what is left.
Step 4: Save Money in a Separate Account
With the recent changes in digital banking, there are so many options for an easily accessible savings or current account. Many have the option where you can name your savings as individual goals that match your purpose. You can even set goal amounts.
If you are saving for the long term (but not long enough to invest) look for the highest interest rate (they are all low at the moment!) or see if you can benefit from a banking switch but also factor in customer service, usability and how easily accessible it is. Just keep it separate and keep the purpose in mind so you can avoid dipping in for unplanned monthly spending.
Step 5: Automate Saving
Life is busy enough with enough decisions to be made. Make your money management easier. Automate your savings for a higher chance of success. It doesn’t need to be something you have remember or do each month. Now you are paying yourself first and have a separate account for your savings, set the payment up as a standing order to yourself on pay day. You’ll soon get used to not having it in your current account to spend and your savings will start to grow.
Alternatively set a payment reminder to remind you each month to transfer to your savings account.
Step 6: Save Consistently
Paying yourself first and automatically will help maintain consistency. But this is where the habit begins and the results will follow. The gap between starting and where you are trying to get to may feel and look big on day 1, but each consistent action with move you nearer to that goal. Consistency is a huge factor in saving successfully.
Step 7: Increase Savings Regularly
Review your monthly savings amount regularly. Can you increase it by a further 1% now that you’ve gotten more used to saving regularly? Use a pay rise, birthday or new tax year as a trigger for a regular increase. Remember ad hoc top-ups can really boost your savings too. If you have an additional bonus, make money elsewhere, sell something, receive a gift can the first % of this go into your savings too?
Start with a small amount today. Nothing is stopping you just putting the first contribution into a savings account right now. Imagine what it is for and know you’ve made a start on saving your money.
One-to-One Financial Coaching. Find out how I can help you save money here
Let me know in the comments below what your biggest saving struggle has been.
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