1. Stop saving at the end of the month: pre-save
Make your savings a priority. Stop saving what’s left over at the end of the month, and change to saving what you want to save as soon as you get your salary.
2. Automate whenever you can
Take advantage of your bank’s regular debit system and turn your saving into a systematic action that doesn’t need your constant attention. This will ensure that you save every month.
3. Always have a clear budget
Draw up a budget to identify your expenses so you can make decisions to adjust them. Make sure you update it at least three times a year.
4. Save a percentage of your salary
Don’t save a set amount of money, but rather a percentage of your income. This way, your savings will keep up with your income and you will avoid falling into a spiral of increasing spending.
5. Set your saving goals
Having a goal will keep you motivated and help you see each step as part of the journey. Set short, medium and long term goals and try to make them SMART (Specific, Measurable, Achievable, Realistic, and Timely).
6. Set up an emergency fund
This could be your first savings goal. A good contingency mattress should cover 3-6 months of your fixed expenses. Creating it will give you financial security and peace of mind.
7. Control the teeny-tiny expenses
Avoid small expenses that seem insignificant on a day-to-day basis, but that together reduce your ability to save. These expenses are the basis of consumerism.
8. Spend money to make you happier
Focus your expenses and finances on what makes you happiest. This might mean having financial freedom, buying a house without a mortgage, creating your business… you then just have to stop and think and ask yourself if this expense brings you closer to or further away from your goal.
9. Avoid unnecessary debt
This is the main source of financial stress and a burden on your savings. Debt can be a good tool but only if you know how to use it properly.
10. Think long term and save short term
Establish a good relationship with money – saving is a marathon, not a sprint. You can save for retirement in the knowledge that it will help you be happier today because it gives you less financial stress in the future.