We all want to make saving money a good habit - putting money away for later takes away stress and improves our lives in the future. Unfortunately, putting that habit into practice can be a little harder in practice. We’ve put together our five favourite tips to kickstart your new savings habit.
Commit to Saving Regularly
Habits are created out of repetition, so it’s no surprise that the most effective way to save is to make it the first thing you do when you get paid. Transferring this money into a specific savings account can help to reduce the temptation to use that money for other things.
Ditch the Pricey Habits
It’s easy to live a good life while saving, but it does mean avoiding some of the more expensive habits. Small luxuries really do add up! Saving money doesn’t mean you need to give up on nice things entirely - regular takeaway dinners are quickly forgotten, but a monthly dinner date at an upscale restaurant is a memorable treat.
Get Your Accounts in Check
Interest rates, fees and investment risks vary between providers, so shop around. Consider when you expect to need access to your money again - the way you save for a holiday in Rome may differ from the way you save for retirement.
Plan for the Future
Putting money aside for short-term goals is important, but so is saving for the future. A little extra aside every week can really add up - whether it’s increasing your Kiwisaver contributions or setting aside some savings for your kids’ education. Thinking about your long term goals can make it much easier to stay focussed.
Get Started Today
No matter how much you save, starting today is better than starting tomorrow. Once you see your savings balance grow, you’ll appreciate your nest egg - and you’ll be motivated to save even more.
No matter what your goals are, it pays to develop a savings habit. By keeping your eyes on the prize, you can achieve your goals sooner and make it happen.