If you don’t have any savings in today’s times, you’re bound to run into financial difficulties sooner or later. With limited wage growth and ever-rising living expenses, it’s more important than ever before to save up. In this article, I’ll take you through the 6 best ways to save money for fulfilling both your short-term and long-term goals.
Keep Track of Your Daily Spending
The first thing you want to do to save more money is to figure out how much you actually spend. When you don’t know how much you’re spending, it’s natural for you to run out of money before you know it. These days, there are tracking apps you can use to keep your daily expenses in check – that means jotting down a list of all the items in your personal budget like your morning cup of coffee. You may be surprised at how even small expenses can add up.
Do Your Budgeting
Making a budget helps you give direction to your spending. After all, you don’t want to spend a fortune on things that you don’t need. A budget will help you focus on the things that are important and also to focus on saving a certain amount (whatever’s comfortable for you depending on your income) every month. I personally do this by dividing my net income into three different categories: my essentials, my wants and finally my savings. Here’s how you can apply it to your budget. Set aside 50% of your income toward expenses that you certainly have to pay like housing and utility bills. Next, set aside 30% toward wants and finally 20% toward savings or debt repayment.
You can also use apps like ADCB MoneyBuddy to keep track of your spending, savings, and budget. ADCB MoneyBuddy is a personal finance management application for ADCB customers. It has helped me to take control of my finances, and ultimately, save more money.
Make Saving Automatic
No one wants to deal with the stress and hassle of saving money. But do you know that you can save more money without actually thinking about it? Yes.
You can simply set up your bank account to automatically transfer funds from your checking account into a savings accounts every month. You can also set up your direct deposit to automatically transfer 20% of each paycheck into your savings account. So before buying anything, you set aside money for yourself!
Don’t Be an Impulsive Shopper
Do you often find yourself buying stuff you don’t need? You may find it hard to resist a good deal on a stylish new pair of shoes for example —even if you’re not really planning to buy it. Impulse buying can feel good, but it can also wreck your savings goals.
It’s easy to get distracted when you go shopping and spend money on things that you don’t really need. Always ask yourself questions like “Do I need this?”, and to make this easier for you, you can use ADCB MoneyBuddy “What If” feature to keep impulse spending in check. This way, every time you spend money, you’ll see how this spending affects your budget.
Start being mindful about what you buy when you go shopping, and you’ll easily save a decent amount of money.
Use Rewards Programs
If brand loyalty really matters to you, then why not consider using rewards programs? These days, most brands offer loyalty programs to repeat customers who can enjoy exclusive discounts and offers.
Rewards Programs like ADCB’s TouchPoints help you to make saving money fun. ADCB’s TouchPoints loyalty program offers you the chance to earn reward points every time you interact with the bank. Over the long run, it will help you to shop and save money at the same time.
Keep Yourself Motivated
On the path to achieving your savings goals, it’s important to celebrate “small wins.” It’s more than OK to treat yourself occasionally to avoid getting frustrated, or worst, spending all your savings at once. So, make sure to put some money aside to splurge a bit.
So, if you’ve been facing problems saving money, try out these tips, and you’re sure to do better than what you’ve done so far.
To read more on topics like this, check out the Lifestyle category