Are you worried that you’ll end up in debt if you don’t start saving right now? Habit number one to practice in 2018, whether you’re worried about falling into debt or already in debt, is to keep your spending money and savings money apart. A clever way to do this is to have two separate accounts – one for spending money and one for savings money. Then, as soon as your income comes in, you can set aside some money in the savings account. Don’t want another bank account? Simply keep your savings money in an out-of-reach, secure and safe place at home.
Budget, budget, budget
One of the most important habits for successful saving is to create a budget. This way, you can expect and plan for future expenses. At the beginning of a month, set up a budget of expected income and expenses of the month. Then, draw up an “expenses log” where you can write down exactly how much you are spending and where your money is going. At the end of the month, compare the two, and compare them to previous months’ budgets and expenses logs. Do you notice any patterns? Did you have to spend more money on groceries that month? Consider cutting back on certain food items you don’t need or use that much. Did you buy too many expensive treats for yourself? Rather consider using expensive treats as reward systems for goals you accomplish in your life.
Take part in savings challenges
One of the latest trends is coming up with challenges to save money. You will be able to find all sorts of savings challenges ideas on the Internet. If you don’t think you will manage to follow ones you find online, simply create your own savings challenge. The “No-Spend” savings challenge is a good one to do. You simply pick a certain number of days and don’t spend any money during that time (unless it’s a serious emergency, of course). Another fun one is the “Weather-Dependant” savings challenge. Choose a day of the week, check the highest temperature for the day, then challenge yourself to put that amount of money away every week! Contact One Debt for more information on how to save effectively.