We all want to feel good about where our money is going.
What does “making the most of your money” mean to you?
Financial security? Independence? The ability to give back? Life experiences? Peace of mind?
LET’S TAKE A DEEP DIVE INTO SOME REAL-WORLD STRATEGIES TO MAKE YOUR SAVINGS DREAMS COME TRUE…
Save for something big.
When my 8-year-old has his heart set on buying a new STAR WARS lego set, he treats every penny that comes through his little hands as though it were precious.
why?
Because he has the end-game in mind.
what’s a grown-up’s equivalent?
Saving for a house, or for a vacation overseas, or for a much-needed new sofa…
Whatever dream you have that requires you to look ahead, stay focused and motivated, and will likely materialize only if you intentionally set money aside.
Having the end-game in mind means that you have a clear idea of how much you need to save, by when, and what steps you need to take to get there.
Think of it as a game plan for your finances. You start by identifying your end goal, then break it down into smaller, actionable steps.
TRY THESE OTHER TIPS…
Track your spending.
Keep a detailed record of where your pennies go… keep receipts, write down the dollar amounts in one list, whatever helps you remember each item or service you buy – at least for a couple of weeks and ideally for a full month.
The level of awareness of one’s spending that this can bring is amazing! You may notice unnecessary expenses cropping up here and there (and there and there).
Shop smart.
Discount stores, secondhand stores, coupons, and clearance sales are your friends – for necessary purchases.
Don’t use those hot deals as an excuse to buy things you don’t really need! You know those shoe stores’ buy-one-get-a-second-half-off deals? Do you really need that second pair of shoes?
(Also, keep an eye on quality and durability because sometimes items are made of substandard materials with lower production costs in order to be sold at low prices.)
Know your subscriptions and memberships.
Boy, they really add up if you’re not watching. Consider cancelling the ones you don’t need, or switching them out for cheaper alternatives.
Personally, I downgraded my Netflix subscription a few months ago, saving $4/month. And I ended a meditation app subscription, saving $60/year.
It adds up.
Live within your means – yes, this means budgeting.
Have you made a monthly budget? A monthly budget can help you plan your expenses and ensure that you’re not overspending or going into debt.
However, making a budget is only half the battle; sticking to it is the other half!
Many people struggle with sticking to their budget, especially when unexpected expenses arise. It’s easy to get sidetracked and spend money on things you don’t need, but remember the big picture and why you made the budget in the first place.
Be wary of going over-budget and avoid going into debt that isn’t easily repaid. Taking on debt can have serious consequences and can set you back in achieving your financial goals.
By setting realistic limits for your expenses, prioritizing essential expenses, and avoiding unnecessary debt, you can stay on track and achieve financial stability.
Routinely stow away a portion of your income.
Think in percentages, and choose one that will give you a cushion for emergencies and give you security in the future.
Curious about what people are saying about how much to save? Here are some external links you can explore, as a start to your research.
(The links provided below are not to be construed as personal advice or recommendations by the author. The author assumes no responsibility for any actions taken by the reader based on the information contained within the linked websites. The links are provided for informational purposes only and should not be relied upon as a substitute for professional advice. It is the responsibility of the reader to conduct their own research and seek professional guidance as necessary before making any decisions or taking any actions.)
Charles Schwab:
https://www.schwab.com/learn/story/how-much-should-you-be-saving
CNBC:
https://www.cnbc.com/select/how-much-money-you-should-save-every-paycheck/
Wall Street Journal:
https://www.wsj.com/buyside/personal-finance/how-much-of-my-paycheck-should-i-save-01671734785
Yes, this mindset requires some discipline, planning, and commitment. The feeling of accomplishment you will have when you achieve your goals is worth it!
Why would you want to take on an “every penny counts” mindset?
- You have limited money – hehem, don’t we all?
- You enjoy being frugal and seeing your bank account numbers rise. Yes, there can be pleasure in saving!
- You’re saving for something big, as mentioned before. Want to take that vacation to Tahiti?
- You have debt and need to pay off what you owe. Mmm, you’ll experience freedom and real accomplishment in that!
- You want to prevent overspending. This may be especially true if you have a history of overspending or financial difficulties.