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Let’s face it; saving money is no easy task. In today’s consumer culture, constant encouragement to spend is all too common, and an increasing cost of living paired with often static salaries only add to the challenge. Despite these hurdles, everyone understands the importance of savings; they’re our safeguard during unforeseen circumstances and our fund for a comfortable retirement. So, how can one improve one’s saving habits? Here are a few strategies to consider.
1. Aim for effortless saving strategies. If you’re battling credit card debt, simply reach out to your provider and ask for a reduction in the interest rate. If they decline, think about shifting to another provider that can offer you a zero-interest period. By continuing your usual payments, the reduced interest rate will allow the balance to diminish more quickly. Similarly, have a conversation with your utility providers about reducing your payment. They would rather cut a deal than lose you as a customer.
2. Implement a reward system. Take it from a former college professor of mine who advocated the practice of studying for 50 minutes followed by a 10-minute break to unwind. Apply a similar tactic to your finances. Set attainable goals, for example, settling your smallest debt, then reward yourself with a simple luxury. It can be as simple as a much-desired manicure or treat yourself to something small yet enjoyable.
3. Maintain company with thrifty individuals. If your social circle is prone to extravagant spending, saving can be a difficult endeavor. Seek out companions interested in affordable activities such as hiking, home-cooked meals, or watching DVDs. Aligning yourself with such crowd can have a positive impact on your saving habit.
4. Share your financial aspirations. Transparency about your financial goals can be a helpful tactic. Many bloggers publicly share their plans, which keeps them accountable. If you’re a blogger, feel free to share your savings aspirations. If you’re not, share your plans with loved ones. This openness will make you more disciplined and your companions may even offer cheaper alternatives when planning activities.
5. Save any additional funds. If you wind up with an unexpected refund or salary bonus, resist the urge to splurge. Instead, steer such funds directly into your savings. Similarly, if you get a raise at work, the extra cash should go into your savings. Make this process simpler by setting up automatic transfers to your savings account.
6. Save certain denominations. One useful method I’ve adopted involves saving every $5 bill received from change when using cash payments. You’d be surprised at how quickly this accumulates, enabling me to save approximately $60 to $100 monthly.
Despite the difficulty, with clever strategies and a prudent choice of companions, saving might just turn out to be less daunting. On that note, what are some of your preferred strategies for effortless saving?
