Everyone wishes they had more money, but not everyone understands how to be good with money and that developing a healthy relationship with money is actually one of the main keys to having more of it.
You may have thought for years that you’re simply unable to save money for various reasons – either you don’t make enough, your outgoings are too high when compared to your income or that you’re simply not good with money and you just spend it too quickly without really knowing where it’s going.
The good news is, that saving money and creating a bit of financial security for yourself really isn’t all that difficult if you approach it in the right way.
Once you know how to save money and you have a good system for doing so, then it becomes like second nature. Of course, if you’re looking for things like investments and ways to save bigger amounts, then taking the advice and guidance of a company like Trust Point Wealth Management could be a good thing to consider.
In this post, we’re going to cover some of the simple ways you can start to save money – even if you’ve never been able to save anything and wrongly believe you’re terrible with money.
Get honest about your finances
The very first step in getting your finances together is to take a real honest look at the state of them. Oftentimes this can be scary because you may think it’s worse than it actually is, but getting into the habit of opening those credit card statements and final reminders can really set you on the right path and once you do it you realize it’s not as bad or scary as you think and that’s actually quite empowering.
Look at your incomings and outgoings
The next step to take a clear look at how much you earn and what your monthly outgoings are in comparison. This may take a while if you’re not used to tracking your money this way, but starting right now is the best time. You can also take notes every time you spend something without really considering if it’s something you need or not.
Then you need to look at the places you can cut back. For example, a $4 coffee each morning may not seem a lot, but it adds up over a month, so why not see if you can make your own instead and you’ll be amazed at how much you can save just by dropping that one thing.
Set a budget
Giving yourself a certain budget that includes your savings is a great way to start putting money aside. You can even set up an automatic transfer so that when you get paid, the percentage you’ve budgeted for savings each month goes directly out of your account so that you’re not tempted to spend it since you never really had it available anyway.
Set a goal
As with anything you want to achieve, setting goals is the key. Don’t set goals that are going to leave you struggling, but even start with something like $50 a month and watch how it builds up over time.