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Every person who sucks at saving money always starts out by saying “I’m going to save” and does absolutely nothing. I’m regretfully the same.
The reason why we suck at saving and why we don’t do anything about it is because we don’t know how to start.
But let’s kick that feeling to the curb. Let’s tackle the problem head on and face our finances. Because if we don’t, we’ll always be stuck saying we’re going to do something– in this case, save– and never do a thing at all.
By following this step-by-step guide, your words will leap into action and you’ll finally know how to save money each month and actually DO IT!
1. Why Do You Want to Save?
Lack of motivation is the reason why people fail at what they do. That’s why if you come to terms with why you want to save, it’ll give you the boost of motivation that you need to save money each month. Every time you feel like not reaching your saving goal, come back to this reason. Remind yourself every day why you want to save and let that push you forward.
2. Determine Your Savings Goal
Knowing you want to save and knowing how much to save are two different things. Typically you want to save at least 20% of your income. Make this your goal. If it feels too high, reach for it anyway. If by the end of the month, you know for a fact that you can’t save the amount, put what you can. And know that the following month, you will definitely reach that amount you just put it in. Then eventually, you’ll reach the savings goal of 20% consistently.
3. Make a Promise
Now telling yourself you’re going to save X amount of money isn’t enough. You need to make a promise RIGHT NOW that you’re not going to fail, that you’re finally going to save, and you won’t break this promise.
4. Transfer Your Savings Goal Right Away
The easiest way to save money each month is to transfer your savings goal right away. From your checking account to your savings account, set up a monthly transfer at a time convenient for you to move your money to savings.
5. Create a Budget
Now you’re probably wondering, you’re just telling me to calculate a number and set it on auto-transfer?! If it was that easy, we’d all be saving. But it’s important that you know why you want to save, what you can save, that you will save, and a way that will force it out of you. This part doesn’t “force” you to save. This requires more effort and resolve. This is what will keep your promise.
Creating a budget is no simple task, but it’s the only way you’ll take control of your finances and learn how to save each month. But it doesn’t have to be overwhelmingly frustrating. Don’t know how to create a budget? This comprehensive guide will show you the easy way to creating a budget that works for you.
Saving money each month seems like such an impossible task. But all you need to do is simplify the process and not be perfect with it. The goal is getting in control of your finances. And starting is absolutely the most important step of all.