One way to control yourself when it comes to saving money is to automate your savings. In the age of the internet where we can log into our bank accounts with our fingertips, it is really easy to set up a standing order. Set up a transfer of a small, almost unnoticeable, amount to be transferred each day, each week, or each month. If you transfer around 2 – 5 pounds every day, your savings will soon be looking fat and rosy. The best thing about saving in this way is that you hardly notice the loss, nor will you feel the deprivation! 2 pounds per day can easily be spent on trivia such as the extra cups of coffee, snacks we could survive without or the “one for the road” drink we could (possibly) manage without. The point is, every little helps when it comes to saving because, remember… compound interest! Money heaping on money and earning interest upon interest, once you start saving it gets really exciting watching the savings account growing.
If you saved a mere 2 pounds each day for a month you would have around 60 pounds at the end of the first month. At the end of one year, you would have accumulated 720 pounds. This may not seem much but as you get the savings bug you will probably add to it and the compound interest will help you along.
Saving money is about developing good habits. There are plenty of ways to cut back on spending and then deposit the cash you have saved into your savings account. Here are some ideas:
- Pack your own lunch for work instead of eating out or buying
- Ask for discounts when buying bigger items. Your brave writer learned that this is much easier than she once thought. I now regularly receive large discounts simply because I ask. Sometimes I have to pick myself up from the floor after having asked for an outrageous discount, never expecting to get it, and without blinking the salesperson agrees. The point is if you are not an asker-of- discounts, try asking for discounts because you could be amazed. The thousands of pounds I have saved, simply because I have asked, is quickly put into savings before temptation becomes too severe.
- Check online to compare prices before you buy a necessary item, such as a computer or car. Once you are armed with the facts it is much easier to ask for a discount.
- Track your expenses and cut out unnecessary stuff. It is amazing how expenses pile up without us noticing. You can then pay what you have saved into your savings account and it won’t be too painful.
Saving money must always be put into perspective. Depriving ourselves is no fun. Saving money must be a balance between enjoying life and remembering that we also want to enjoy life when we are older and no longer able to earn as much as we once did. Enjoy saving money and making your money work really hard for you. It really is fun!