Saving is easier when you have a plan, but putting money aside is not an easy task. Especially when there is always something to pay for and buy. Sometimes the hardest thing about saving is getting started. Developing a simple but realistic and strategic plan may be your only shot at saving for your short- and long-term goals.
If you want to take control of your finances and smash your goals, you might want to consider putting some money away weekly or monthly to have access to when there is an emergency or for certain events like Christmas celebrations, etc.
The good news is that with anything at all, you need to practice consistently to become perfect at it. When it comes to turning savings into a habit you enjoy and excel at, there are classic tips to follow. Setting aside money for specific purposes increases your chances of being consistent with them. The end goal will give you the push you need to delay gratification and reach that financial obligation.
Saving is an essential practice that everyone should practice and adopt, as those who master this skill can effectively manage their resources. So how can you go from being a terrible saver to an excellent goal-getter without killing your zeal? Let me share some solid tips with you.
Make yourself a priority.
If you are still living paycheck to paycheck, then you need to retire from it and retire from that process to learn a new way of doing things. You need to learn the saving hack of saving in bits if you believe you do not save enough, as saving is a discipline that can be cultivated if you put it in your mind. Instead of paying your bills first, why don’t you put some cash away for yourself first? This can be a consistent practice if you enable auto-debit to your salary account and save small amounts towards your emergency fund. While it might be hard at first, you will learn to get used to the first debit going into paying yourself and love it once the money adds up, and you now have an emergency fund that you can access when the need comes up. Creating a separate high-yield savings account would be perfect to build this new habit.
Set smart goals.
Setting goals helps you see what your scale of preference looks like and helps you work towards the most important goals first. This allows you to see vividly what comes first in your finances, and you can take forward steps to achieving them.
For example, if you are trying to buy a car and want to save for your house rent, both are equally important, but on your scale of preference, one will come up before the other. Think through these two important expenses and use your budget to make your decisions, so you can avoid wishful thinking.
Thanks to the My Target savings plan on Vale, you can set up more than one goal at a time. While you are trying to reach both goals, you need to determine how much of your income will be diverted into these buckets and how frequently to help you reach each individual goal in good time.
Your income and expenses will determine how much you can realistically save for a car and towards your rent in what timeframe. Set a realistic date to remove the pressure, and be sure to make these plans according to what works for you.
Differentiate between your needs and wants with a budget.
We all desire some form of luxury in our lives, but a lot of the time, we cannot afford it yet. To know what falls under needs and wants, you will need a strict list of priorities. Having one will help you know what you can sacrifice to achieve another, which is a must-have.
Do not do anything that is beyond yourself because it might cause a huge drawback with your other commitments and affect you throughout the rest of the month when your cost of living should have been covered. Chances are you may not get it right on the first try, but the goal is to improve with time, adjust your financial strategy, and improve your financial health overall.
Automate your savings with My Target
Saving regularly is the advisable thing to do, but it is easy to forget to take care of yourself first. My Target plan on Vale, a high-yield savings account, offers automated transfers with just your card. You can choose when, how much, and what savings goal to transfer the money to so that a portion of your paycheck goes directly into your savings account.
The advantage of My Target auto debit is that you do not have to think about it, and you are less likely to spend the money instead.
With all these hacks in place, you can sit back and watch your savings grow. You can relax and focus on other things while your money works for you on Vale. Remember, you do not need huge contributions; consider saving a little at a time and see how it adds up and changes your financial health.