With the ever-rising prices of goods, it becomes increasingly hard to save up money. Of course, one must consider the not just the bare essentials in living like eating three square meals per day but also the cost of pampering ourselves since after all, it is money that we worked hard for so we might as well enjoy it.
Perhaps one consideration in our spending also relies on how we want to look in front of our friends or in social media since for many people; they want to show that they are living a fabulous life.
However, one must also consider the future where unexpected things like illnesses can happen and everyone should at least be able to prepare for it. I would like to share a few tricks in achieving the proper mindset and attitude towards saving.
Set a realistic target on your regular saving
A terrible mistake in planning your savings is to overdo it. Set a reasonable amount of money that you can save on a regular basis. On the other hand, if you try to save too much, it may happen that you cannot commit to saving such amount on a regular basis and end up getting demotivated to save.
Consider your cost of living and allocate some money for self-gratification from time to time as well, so as not to overburden yourself in the effort to save. There is no hard and fast rule in the amount that you must save.
For example, some people prefer to save 10% of their monthly income but it truly depends on the situation. If you cannot commit to 10%, a lower rate is fine. If you want to save up a higher chunk of your income, then good. What is more important is the consistency in saving.
Factor in anticipated outflows in your savings
For instance, if you are planning to go overseas for a vacation within the next few months, consider saving up for your budget for that trip in advance on top of your real savings.
It would be more manageable and easier that way instead of disrupting your saving habits if and when you are already preparing for the vacation. The same also applies for purchasing big-ticket items like a new gadget or something grander like a new car.
Set aside your savings first before spending your money
This way, you are avoiding the risk of overspending and neglecting your commitment. This is why a realistic goal is important: you can stick to your goal while being able to maintain a reasonable lifestyle.
Put your savings in a separate account
It is best if you have a separate account for your personal savings and make it so that it will be hard to withdraw it. One example of this would be to use a passbook versus a debit card. This serves both as a means to monitor your savings, as well as a deterrent to spending it.