Money Habits to Help You Increase Your Savings

The maximum number of people struggle to save money, and more than half of Americans fail to cover $1000 expense. But you are not among the ones who settle for mediocrity as you are an action taker. We all know the truth that saving money is not easy, and for that Breaking Bad habits and learning new strategies is a must. The strategies are simple but will need to focus on discipline.

The first thing we should be clear about is why do we want to save the money. So, to get a clear-cut idea of it Jot down all the points on the sheet of paper and prepare a road map. Secondly, adopt better money habits. So here are a few habits that may help to grow your money: 

Transfer money into savings 

One of the easiest ways to save is to set up automatic transfers. To achieve your goals, make a habit of auto transferring a few rupees each week into your savings account. For example, if you are planning and your trip and trying to save 50,000 in six months, then automatically transfer accordingly per week into your savings account. 

Always keep a look at your expenses and check if you are spending more than your planned budget. If you are spending it instead of saving estimate it and do not let your budget say that you should have the money left over!

Plan the purchases

Plan out for your shopping and make a list of exactly what you want instead of making a quick run to the store and buying random things unnecessarily. This will help you to analyze and manage your savings, and by having a list, you will be able to avoid impulse shopping or picking up things that you do not need. 

The same goes for online purchasing. Always check the brand, reviews, material, and price before purchasing anything online. Do not get attracted to everything you see; things are not the same as they appear. Do not go for items that are too costly and unaffordable. 

Save with substitutions

The categories that are not important for you do not spend much on them or find a less expensive alternative. Spend the most in those areas which are most important to you. To make sure that you are not overspending always create a budget if you are willing to grow your savings then pay yourself. This means that you are putting money 1st into your savings and then getting your paycheck. If you only pay your bills and expenses, then you are at risk of not saving enough to hit your goals. So, doing this by auto transferring money into a savings account will be a good idea. 

Improve your habits

You should be able to face reality. You have been delaying in accepting the facts, which is the reason you have not been able to save money for a long time. Sometimes we are not able to accept the fact that we are not saving as much as we should. Ignoring this would lead to spending the money that is part of your savings. 

Instead of hiding from reality, we must be honest with ourselves so that we feel proud and show self-compassion. You will then be aware of the bad habits you carry and will try to improve by working upon them. 

Financial progress

Take some time after each month to see how much progress you have made on your money goals. How much debt is paid off and how much you are saving on for a down payment or a dream trip. Analyzing the results will help you stay on track. It will also give you a boost and inspiration and help you to increase the level of saving. 

We all know small changes can make a big difference. So, to make a big difference in your financial health start making small changes. Also, match the cashback you earn While using a credit card. Setting reasonable savings goals should be the first step, and one should start with a little amount at the beginning. Always save 10-15 percent of your income and this way you will save a huge amount by the end of the year. 

Track your expenses

Tracking your expenditure will help you Save more money and is essential too. You need to prepare a monthly budget and track your spending accordingly. Use only a certain amount to your purchases and keep track of everything you buy. This will give you an idea about the category in which you spend the most, in which who does not require to allow a huge amount and where you need to think thrice before spending. 

Look for alternatives

Due to competition in various sectors, there are always alternatives to what we need to buy. Before making a purchase, look for the available alternatives. A thorough comparison between the price, quality, and quantity must be made of what is considered to buy. 

One strategy does not need to work for everyone, so it is better to make your own according to your needs, wants, and budgets. By using a method known as anti-budget, you can pull your savings without keeping track of budget categories. 

Invest

To have more for the future, invest more. The surplus money can be directed to your savings account or can be invested in the stock market. This way one can set some money aside that will grow eventually. This habit should be adopted by everyone to save and grow money. For better results, try saving weekly and if not possible, then try saving monthly. 

Conclusion

These were some of the easy steps one can implement in its life to improve the money-saving habit. These steps can be proved to be extremely beneficial and the outcomes will be surprising. You will realize that you ended up saving a lot than before. Managing your expenses at an incredibly young age is advantageous in the long run. Indeed, saving money means sacrificing! It can be a miserable experience and by setting small goals, you will reinforce the idea that you are doing such a thing that will pay off. 

Building something does not happen overnight, but you can create a plan. Start with consistent and small steps and the habit of saving will be built automatically. It will also help in reducing unnecessary stress and will create a financial cushion. The journey can be tough at the beginning, but it is not impossible. Start setting up small goals and reward yourself for every goal. Self-motivation is the best thing that keeps your going and eventually you will find yourself conquering.

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Co-author: Shraddha Thuwal

Shraddha Thuwal is the author of the book “Let us Conquer over weakness”. She is a blogger and her work has been published in various anthologies. By writing, she aims to reach out to people, create awareness and create a positive impact globally.