We all know that saving money is important but in spite of knowing that, we don’t follow it. The Americans especially share a love-hate relationship with budgeting and saving money and this is why their personal debt ceiling always remains sky-high. For some people saving money is like a healthy diet, they know that it is necessary but they don’t follow it as they don’t find it tasty. If you’re someone who simply hates to save money, you need not fret as you’re not alone. However, that doesn’t mean that you won’t save just because you don’t like to save.
People usually understand the significance of their mistake of not saving money when there arises an emergency. If you don’t want to fall in trouble, here are few tips that you should follow in order to save your dollars.
1: First save and then spend the remaining amount
As soon as you get your monthly salary, set aside a part of the income, probably 10-15% of your monthly pay into a savings account. Once you do so, you can spend the remaining salary without any issue. The experts call this ‘paying yourself’ first which is definitely more fun to do than having to worry later on about your expenses. Try this even though you hate saving money as this really works.
2: Automate your savings account
Do you know that there are ways in which you can automate your savings account? You may visit the bank with which you have your company payroll account and ask them whether or not they have an automated savings plan which they can arrange for you. This clearly means that whenever the payday will arrive, a pre-decided amount will be deducted automatically by the bank from your salary and later on deposited into a different savings account. You will even get bank products which you may choose from.
3: Savings shouldn’t be easily accessible
If you make your savings account just an ATM withdrawal away, there are more chances that you will touch the account and gradually keep withdrawing money. Hence, if you really want to keep saving money, make sure you make it inconvenient to cash out your savings. How about a passbook bank account? If the account allows you only 3-4 ATM withdrawals in a month, this could also be a good option of saving money without withdrawing too much.
4: Use cash instead of credit
If you have already inculcated the habit of using cash instead of credit, it’s well and good for you but if you haven’t, it’s high time you do so. You can avoid racking up debts and you can even boost yourself to live a life within your means. Once you start using cash instead of credit, you can build a savings account which you don’t have to touch for repaying debts.
Therefore, if you’re someone who is wondering about how you should start the noble task of saving money, you can take into account the tips and strategies mentioned above.