While spending money gives us such a rush, saving it feels like an endless task. Sometimes we feel like we can never become a saver. The money goes out faster than it comes in, and whenever you finally start saving an emergency wipes your savings clean. However, we can trick ourselves into not only saving the money but also enjoy doing it by adopting a few tricks.
Let me tell you how:
1. Record your expenses.
Keep a diary and maintain a record of your expenses. Evaluate it at the end of every month. It serves two purposes: One, you are able to understand the areas where unnecessary expenses were made, and two, you can plan better for the next month. There are plenty of apps that will help you do this also. The apps make it super convenient to track your expenses on the go. I personally use mint.com and the mint app.
2. Resist the temptation.
When you get a bonus or a return on an old investment, you may feel the urge to go out and splurge it on the dress you have been eyeing for quite some time. Resist the temptation! Remind yourself of the bills and payments the money shall be able to cover for you. As a golden rule, use the extra dough only for necessary things. Buy that dress when you save from your regular income.
3. Piggy bank it!
If you wish to save for a specific item and are not able to do it, the best way is to revisit childhood and bring back a piggy bank. Demarcate one for a particular item and keep putting small amounts in it periodically. When you have the money you need, smash it open and fulfill your wish. Do not buy one that can be opened otherwise.
4. Automate it.
If you feel it is difficult for you to be able to save for a long-term goal, say buying a car, higher education or your retirement, request for automated clearance of a specific amount from your salary account to the saving one. This will remove the specified amount from the money available to you for spending at the beginning of every month and you will be able to budget your finances accordingly.
5. Reroute your payments.
If you are on the verge of completing payment of the home loan or car loan, do not add the monthly installment to your money-in-hand. Reroute it to your savings account or invest it into a long-term plan. Remember, this is the money you were able to manage without. So once the debt is paid off, continue making the payment, but in your savings.
6. Be an intelligent hoarder
Hoarding is not always bad. If done sensibly, it can actually help you save a considerable amount of money. If you are recording your expenses, you know the things that you frequently need to replenish. Be on the lookout for good deals in stores on these items and when you find one, grab it and buy in bulk.
7. Don’t use shopping as a mood elevator
Though shopping acts like an instant mood elevator when you are feeling low, replace it with something else. Do not go shopping when you are in a bad mood, you will end up buying things you didn’t need in the first place and then repent it. Instead, go out and meet a friend or just sit and listen to music. Even a chocolate or an ice cream might help. Postpone the shopping trip to another day.
Saving money can be fun if you know these hacks. Do remember to pat your back when you successfully use any of these tricks to your advantage. Don your new avatar with pride.