Let’s face it, saving isn’t always easy. So many temptations! You might start out with good intentions, but the next thing you know, it’s the end of the month and you still haven’t put any money aside. Here are a few tips to help you save.
1. Reduce your debt
Some debts come with high credit charges. If that’s your situation, paying them off sooner might be better than putting money aside. Take a moment to calculate the interest you pay each month to see how much your debts are really costing you. Paying them off will mean you can easily start putting that money toward your short- or long-term savings goals. Paying your debts off sooner to save on credit charges is usually the best way to start building your future.
2. Set savings goals
Where do you see yourself in 5 years? To make saving a daily habit, it’s important to think long-term and ask yourself what goals you’d like to achieve. For extra motivation, break down each of your savings goals into steps. Let’s say you want to buy a home in 3 years with a 20% down payment. That’s a clear goal! And it’s easy to calculate how much you’d need to save every month to achieve it. Setting clear goals and plotting out the steps will make it easier to stay focused.
3. Calculate expenses on a yearly basis
How much do you spend on takeout coffee every week? Or that daily lunch out with colleagues? These things may not seem like they’re costing you much, but they add up fast. Calculate how much they’re really setting you back. If eating out costs $10 and making your own lunch costs $5, that’s $1,250 you could be saving every year. Wouldn’t you rather put that toward something that really matters to you?
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