Sometimes the hardest thing about saving money is just getting started. It can be difficult to figure out simple ways to save money and how to use your savings to pursue your financial goals. This simple step-by-step guide to money saving habits can help you develop a realistic and a good saving plan.

Record your expenses

The first step to saving money is to figure out how much you spend. Keep track of all your expenses which means every tea, newspaper and snack you buy. Ideally, you can account for every penny. Once you have your data, organize the numbers by categories, such as gas, groceries and rent, and total each amount. Consider using your bank statements to help you with this. If you bank online, you may be able to filter your statements to easily break down your spending.

Make a budget

Once you have an idea of what you spend in a month, you can begin to organize your recorded expenses into a feasible budget. Your budget should outline how your expenses measure up to your income so you can plan your spending and limit overspending. In addition to your monthly expenses, be sure to factor in expenses that occur regularly but not every month, such as car maintenance.

Plan on saving money

Now that you’ve made a budget, create a savings category within it. Try to put away 10–15 percent or more than if you can of your income as savings. If your expenses are so high that you can’t save that much, it might be time to cut back. To do so, identify non-essentials that you can spend less on, such as entertainment and dining out.

Choose something to save for

One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for anything from a down payment for a house to a vacation then figure out how long it might take you to save for it.

Here are some examples of short- and long-term goals:

Short-term (1–3 years)

  • Emergency fund (3–9 months of living expenses, just in case)
  • Vacation
  • Down payment for a car

Long-term (4+ years)

  • Retirement*
  • Your child’s education*
  • Down payment on a home or a remodeling project

If you’re saving for retirement or your child’s education, consider putting that money into an investment account such as wealth builder done in standard chartered bank. While investments come with risks and can lose money, they also create the opportunity for compounded returns if you plan for an event far in advance.

Decide on your priorities

After your expenses and income, your goals are likely to have the biggest impact on how you save money. Be sure to remember long-term goals it’s important that planning for retirement doesn’t take a back seat to shorter-term needs. Prioritizing goals can give you a clear idea of where to start saving. For example, if you know you’re going to need to replace your car in the near future, you could start putting money away for one.

Make saving automatic

Almost all banks offer automated transfers between your checking and savings accounts. You can choose when, how much and where to transfer money to, or even split your direct deposit between your checking and savings accounts. Automated transfers are a great way to save money since you don’t have to think about it and it generally reduces the temptation to spend the money instead.

Watch your savings grow

Check your progress every month. Not only will this help you stick to your personal savings plan but it also helps you identify and fix problems quickly. These simple ways to save money may even inspire you to save more and hit your goals faster.

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