The idea of saving money is natural for some but difficult for others. Even if you want to save money, you may find yourself in a situation where you’re living month to month and never feel as though you have enough to save anyway. This guide can help you to look differently at your finances.
Why Save Money?
It’s a good question: you work hard, after all, and not being able to spend your hard-earned cash may not seem entirely fair. You don’t work to save; you work to live. However, saving extra cash doesn’t mean that you never have to treat yourself. It means being more sensible about money habits and getting better control of your finances. So why save money?
- To build an emergency fund. You never know what’s going to happen, after all. What would you do in an emergency situation that you hadn’t factored into your normal budget?
- To have financial security. It’s always good to plan for the future, whether for yourself or for your family. Having financial security with savings helps for peace of mind and more options.
- To be more disciplined. Having good control and organization over money is a good skill to have. It’ll help you in life.
- To avoid debt. If a big purchase comes up, like the need to buy a new car or a new TV, you’d have to take out or a loan or buy on finance to afford in a one-off payment if you don’t have savings. This then puts you into debt.
How to Better Build Your Finances
- Think Differently About Big Trips
Naturally, you’re owed a break and vacation every now and again, but that’s a huge chunk of money at once. If you can be more creative, you can save a lot more. Even if it’s just for a year or two, you can ditch the expensive overseas trips and try for a staycation or vacation in your country instead. Put the extra money saved aside into savings.
- Save Your Tax Refunds
It’s always a moment of celebration when you’re owed some money back, and it may feel like a bonus you can use to treat yourself. Saving your tax refunds is a much better idea to help build your emergency fund. It’s money you wouldn’t have had anyway so you won’t miss it, but it can be a big savings help. You can apply for a refund and also check where is my state tax refund when it’s owed to you.
- Pay with Cash
It’s so easy to swipe your card for everything, and therein lies the problem. You don’t know how much you’re spending or how much you have left. Setting up a strict budget and taking the specific amount of cash with you that you can afford means you’ll know exactly how much you have left and when to stop.
- Put Your Savings Away First
When payday hits, your first thought may be to spend, spend, spend. If you leave your savings until the end of the month, you may find you have nothing left to save.
Instead, put a chunk of savings away as soon as you get paid. Then you know exactly how much you have left for spending and for bills. It’ll also help with guilt-free shopping if you already know you’ve put your savings away for the month.