We all need to save for things from time to time, and we should all really be saving a little every month anyway. The trouble is that it can be hard finding enough money to set aside each month and it can be tricky to stay disciplined and on track with your savings plans. Which is where we come in as we share some tips on how to save successfully.
You need to fully research all that you are saving for
It helps you to save by initially working out how much it is that you actually need. As such you are going to want to work this out before you do anything else, and take the time to be thorough and take into account all of the costs.
If you are saving to buy your first house, along with saving for your deposit, what other fees will you need to budget for? Check out how much the conveyancing is likely to cost you, what the mortgage administration fees are, how much you will need to spend on furnishing and decorating your home and the cost of removal services.
If you are saving up for your wedding how much is reasonable to spend on that dress? What is the venue cost likely to be and what is the true cost of hiring a wedding DJ? Detail every area so that you can be precise.
Work out a final figure and then you can begin to make your plans.
Be realistic about how much you can save each month
Before you work out what you will need to save each month, you need to understand what money you have available each month.
Spend time going through your income and expenditure, allowing for those things that do crop up from time to time that you will need to pay for.
Now that you have a realistic figure of your priority spends, you can see where you might be able to reduce costs and then how much you will be able to save. Once you have found this figure, do your utmost to stick to it each month and set it up as a regular standing order to your savings, which brings us to our next point.
Give your savings a separate home
It is worth keeping your savings separate from your everyday funds. This helps you to keep track of them and ensure that you don’t eat into them.
Look around for the best savings accounts and rates and think about the types of accounts that will suit you best. You might deliberately choose an account that makes it hard for you to access the funds quickly to encourage you to leave them alone. Or you might know that you will need easy access so you will look for online withdrawal options to make it more flexible for you.
Focus on the end goal
When you can feel yourself struggling or wavering, then focus back on the end goal.
Spend some time going back over your new home plans, wedding lists and holiday dreams to keep you on track. Getting excited all over again about all that you are saving for will help you to stay on track.
You could keep a visual aid tracking your progress to help you to stay motivated.