|We all love to reward ourselves, especially during paydays. We spend our hard-earned money on clothes, food and drinks and other leisure activities that can make us feel better and recharged. This is great and this can be a form of self-care (which we really need in these times). However, wouldn’t it be far better if we can also give ourselves something that will last? Well, that’s what savings are for!
Saving up money is a habit that your future self would thank you for. It helps you reduce financial stress, prepares you for a financial emergency and enables you to make large purchases in the long run. However, there are still a lot of people who neglect this practice. In fact, based on the latest Cantar Consumer Pulse Report, 21% of Australians are not saving money.
If you’re one of the 21%, fret not. You can still start building your savings and in turn, secure a better future for you and even your loved ones.
Create a budget and stick to it
Budgeting is the first and most basic thing you should do when you want to save up. First, create a clear picture of your regular expenses by listing down every single thing you spend your money on.
From there, identify which ones are essential like food, rent, utilities and medications if there are any and set aside a portion of your income for them. Once you’re done budgeting for the important things, find a way to reduce cost on other items. For example, you might want to cancel unused subscriptions to the gym or streaming sites. Then, instead of buying food at work or restaurants, why not try doing weekly meal planning and bringing a packed lunch? You might be surprised how those little things can add up.
Once your budget is settled, make sure to stick to it! The key here is not to restrict yourself but be realistic about your expenses. You may provide some allowance for unexpected leisures trips but don’t splurge and spend beyond your means.
Set goals that will motivate you
We get it, sometimes it can be too hard to resist buying something with a glaring red sign that says “SALE.” It’s also hard not to follow trends and buy that designer bag or shoes that you’ve been eyeing for a while now. This is why you need a goal.
A goal will help you be firm on your decision and will serve as a motivation to continue saving. Start by thinking of what you want to achieve in the long term or short term. It can be a new business, your dream vacation or a comfortable retirement. Ultimately, think about the peace of mind that financial security can give you.
Control your impulse
Along with a goal, there are helpful rules that can save you from impulsive buying or purchasing something unnecessary and expensive without proper decision-making. Try imposing a 24-hour rule where you wait for the said time frame to pass before buying something. There are also 5-day or 3-day rules, depending on how much time you need to make a sound buying decision.
You can also try calculating the number of hours you need to work to earn the amount on the price tag. For example, if you want to buy an $800 pair of shoes and you earn $25 per hour, you would have to work for 32 hours for a single footwear. Then ask yourself, is it worth it? Do you have the money and energy to spare for that purchase?
Keep track of your progress
Review your budget regularly and check your progress. This will help you identify gaps and at the same time inspire you to continue saving up for your future.
Invest and grow your money
Don’t just save money. Grow your money through different investment options available in the market today. Sure, some may be quite risky, but they also reap higher returns. You may also opt to invest in a house as they don’t lose value overtime.
|Need help with understanding property investments?
When it comes to your financial decisions, the right advice is critical. At Ripple Finance, we help take the stress out of financial lending.
We offer several quality finance solutions focused on assisting you in maximising your investment opportunities. We understand that each need is unique, and we strive to find suitable solutions accordingly. We work with you to provide a hassle-free experience. We make home loans easy with access to hundreds of different options from a panel of Australia’s lending leaders.