Turn your saving behaviours into a habit
To change your habits, you first need to know your current habits and then decide which ones you should change.
Replace unhelpful habits with more constructive ones, such as putting money aside on payday. Pick only one or two habits to change at a time.
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Consider what you are saving for. If you're not sure what you really want in the long term, you can try a thought experiment:
Describe your answer, draw it, get a clear image of it. When you want to buy something, look at your values and decide if you really want to spend the money.
Find a balance between your immediate needs and your more optional desires so that you can stay happy and motivated while setting aside enough toward your long-term goals.
On the one side, we often think something is essential when it's optional. But it is as common for people to save while neglecting urgent essentials. The key is balance and planning. So remember to set exciting short term goals along the path to your big dreams.
People want to save for many reasons: for unforeseen circumstances, retirement, holidays, or to avoid debt. Others think it is a good idea to save because they should.
While not everyone is in a position to save, of those who can save and knowing its benefits, few do it. According to Money Charity, about half of all Britons don't have money saved to fall back on. In the United States, the average saving rates were around 7.6 per cent in 2019.
Underlying many of our difficulties with saving is that we only pay attention to our most immediate needs rather than prioritising a long-term saving strategy. We may also have an impulse to keep purchasing items to show off, such as a new phone (even if your existing one is adequate).
You're more likely to save if you do these things:
The first step to start saving money is to figure out how much you spend. Keep track of all your expenses—that means every coffee, household item and cash tip.
There are five different types of financial personalities, each of them having their own set of values and outlook towards money:
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