Saving money is not the easiest of tasks, even at the best of times. But times are not at their best at the moment, either; with high rates of inflation having endured since late 2021, nine in ten of us have faced rising costs. Saving is not impossible, though, and with the right attitude anyone can start their own savings journey whenever they want. What are some ways in which to approach such a journey?
Start With Goals
One of the more common reasons for which people give up on their savings efforts is the lack of a workable goal. The statement ‘I want to save more’ is not a compelling one by itself; there are no stakes, nor are there any milestones to work towards or achieve. With success effectively undefined, you would be doomed to failure – and to giving up sooner than you might otherwise think.
With this in mind, sitting down to write down some simple, achievable goals can be a powerful way forward. Shorter-term goals should have a deadline attached to them, and be achievable within your current income level; longer-term goals should focus on a specific outcome as opposed to a figure or time, such as buying a home or comfortably affording a given luxury.
Start Saving Right
Putting your best foot forward is a great way to make the most of your savings efforts; this means putting some serious consideration into your first movements as a newly-frugal saver, starting with the savings accounts you intend to use. There are many different kinds of account out there, with different rates and different boons besides.
Don’t be afraid to shop around for the right account, but be sure to keep an eye out for the best possible rates of interest – and if your goals are longer-term, don’t be afraid to lock your money away for a little while to access higher rates of interest.
Address Your Situation
You can’t save properly without having the right knowledge about what’s going on in your own bank account. You don’t need to get granular about how much you spend each day – but it sure would help if you did. For those without the time to pore over every receipt and card payment, a simple understanding of what’s going in and what’s coming out is more than enough to start with.
Cut Shrewdly
From here, you can start to make precise, targeted and potentially ruthless cuts to what you are currently spending each month. Even if this isn’t a necessity in order to create expendable income enough to save, it can do a great deal for maximising your savings – with figuratively exponential consequences later on, thanks to the effects of compound interest. Start with easily-cull-able costs like media or fitness subscriptions, and move up to less cut-friendly costs like leisure later on.