Saving money is something we all want to do, and it’s one of the most common New Years’ Resolutions people make. It’s also one of the hardest resolutions to keep. Let’s face it: getting started saving money is easy enough—you put some cash in your savings account. Sticking with it is the hard part. The moment you don’t have as much on hand as you’d like, that nest egg starts looking very tempting.
It’s important, as with all things, to take it slow and start small. There are a number of clear steps you can take to become successful at saving, and get that nest egg established. Let’s look at the ABCs of saving, and some great advice and tips for saving money to get you started strong, and help you stick with it in the long term.
Tips for Saving Money
The three basic steps for saving money are to set a goal, create a special place to hold your savings, and to simply get into the habit. Let’s take some time to look at each of these steps in depth.
Set a Goal for Savings
The first step to save money is to set goals. Make sure these goals are achievable, and can be reached with small steps. It’s good to have an end game—maybe you want to go on a trip, for example, but baby steps need to be taken along the way. In other words, you need both long-term goals and short-term ones. When you achieve a short-term goal, allow yourself a little reward to celebrate—just don’t tap too far into those savings!
Set a Special Place
Have a specific, special place your savings will go. For most people, this is the bank—a savings account. You can, however, simply put it in a sock under the mattress if you like (though this isn’t the most secure idea). It’s a good idea to limit your access to your savings—for example, don’t hold an ATM card for your savings account, so you need to go to the bank to make withdrawals. This will make it harder to tap in when it gets tempting.
Get into the Habit
Make a habit of saving a specific amount every specific interval. It only takes doing something five times in a row to create a habit from it. That’s right; all it takes is five times to get into a habit, and once you’ve got the habit established it will quickly become second nature.
Next, make it a point to put extra money away instead of spending it. Extra gift money, for example, should go into the bank instead of being used to pick up something from your Amazon wish list.
Consolidate Your Debts
Lowering your monthly payments can be a great way to open up some extra cash. A personal loan from Koster Cash Loans can be a great way to consolidate all of your debts into one place, and lower your overall monthly payments, while still paying down debts. Read a bit about our company and contact us for more information today!