We’ve all done it. Payday arrives and it’s the green flag we’ve been waiting on. Whether it’s a new pair of shoes, a dress, a hairdo or manicure when the paycheck hits the bank account some of us struggle to manage it well. You may think “if only I’d spent less and saved more,” or “I still don’t have anything saved for retirement,” or “how will I ever save enough for a deposit for my first home?” Well, if you struggle to save here is some advice to help you get on – and stick to – the right path.
You have to start somewhere, right? So, don’t put off today what you can do tomorrow. It’s not that you don’t make enough to save it’s that you can’t afford not to save. And it’s not a myth that once you get started saving gets easier because when you begin to see the amount increase, even if it’s little by little, you are getting somewhere. Over time the amount you’ve saved will increase to a deposit for a house or retirement fund. And as your income grows so will the amount you are able to put away. Thus, returning to the point earlier: you can’t afford not to save.
It’s hard to stave off temptation, so don’t go cold turkey. Allow yourself the opportunity, every once in a while, to indulge in a new pair of shoes, dinner with friends, or a concert perhaps. The trick is creating boundaries. If you hit a milestone in your savings account and you decide it’s time to treat yourself, it's ok to do so. Just make sure you set the next goal and stick to it before you dip into your savings again.
Be realistic. You’re not going to get rich overnight – unless your numbers come up. Slow and steady is key. One day you’ll look back (probably tomorrow) and wish you’d started saving earlier.
And, finally, there’s no shame in spreading the word so that others learn just how easy it is to save – once you take the leap. It might even help to support one another as you seek out less expensive alternatives to your once - some might say - poor spending habits.
My Money Manager is a financial management tool available within the mobile app that allows you to setup a budget and create savings goals.