Have you ever wondered why some people find it so easy to save money while you struggle to set aside even a small amount each month?
I used to be really bad at saving as well. I didn’t have any savings and I was living paycheck to paycheck for many years. However, when I became a mom, I knew I needed to turn my finances around for my son. I first started with a $1000 savings goal but soon after reaching that goal, I was inspired to reach my other financial goals such as building an emergency fund and saving $100,000 in three years without a six-figure income.
You see, when it comes to saving money, many people believe it all comes down to their financial situation. Well, while having a six-figure income and fewer expenses can make saving much easier, it is only one part of the equation. Your money habits are what make all the difference.
In fact, people who are successful savers have one thing in common—they have habits that make them successful at saving money. If you adopt these habits and make them a consistent part of your routine, you can be a successful saver, too.
Here’s a list of habits that successful savers consistently practice. These are also some of the habits I learned that helped me consistently save money.
- Successful savers have goals.
Think about what you are saving for. Do you need a new car to get to work, or do you dream of taking a fancy trip to a far-off destination? You may want a safety net in case of unexpected expenses. Whatever your goal , it is important to have a clear vision of what you are working towards.
Without a specific goal in mind, it can be easy to lose sight of why you are saving in the first place. Setting goals allows you to have a clear direction and purpose for your savings, rather than just aimlessly putting money aside. When you know exactly what you are saving for, it becomes much easier to make smarter choices with your money and stick to your plan.
When setting goals, it’s important to be honest with yourself about what you’re capable of achieving. Take a look at your income and expenses to get a clear picture of where you’re starting from. Consider what you can realistically afford to save each month, and set a goal that reflects that.
I suggest starting with smaller goals such as saving $1000 or any amount you can realistically save in 1-3 months. Or, consider building an emergency fund that cover for your expenses for a month if you haven’t. Once you have successfully reached these financial milestones, I bet you’d be inspired to reach bigger goals.
- Successful savers create a budget.
When it comes to saving money, creating a budget is absolutely essential. You might think that you can just keep track of things in your head, but trust me, having a budget in place will make a big difference in your financial life.
A budget is a plan for how you will spend and save your money. It lays out your income and expenses, and it helps you see where your money is going and where you may need to make adjustments. Instead of spending money without thinking, a budget allows you to be mindful about what you spend your money on.
When budgeting, you may find it challenging to manage all your expenses at once. Breaking things down into manageable chunks can make the process less overwhelming.
One way to do this is by focusing on one area of your expenses each month. For example, if you decide to focus on your grocery expenses for the month, you can track all your purchases and figure out where you can cut back to save money.
- Successful savers avoid unnecessary debt.
Don’t get me wrong here. Debt is not bad. Debt is actually great if you’re using it to make money, such as using it to acquire income-generating assets. However, using debt to pay for your lifestyle is bad debt. Using debt to pay for your medical bills or utility bills is not good as well because, obviously, you should have funds for those needs in your budget.
When you’re allocating your funds towards paying down debt each month, saving money can seem like an unattainable goal. That’s why I avoid debt whenever possible unless it is for something that will make me money.
One way to avoid debt is to live within your means. Don’t buy things you can’t afford just because you want them. Distinguish between what you need and what you want, and prioritize your spending accordingly. For me, the rule of thumb is that if you’re unable to pay cash for something, you can’t afford it.
Think carefully before making any big financial decisions. It’s always a good idea to sleep on it before making a big purchase to make sure it’s something you really need.
- Successful savers live a frugal life.
Frugality is often mistaken for deprivation, but it’s the opposite. By living frugally, we can enhance our quality of life and appreciate the finer things even more.
When you live frugally, you are conscious of how you spend your money. You prioritize your spending on things that truly matter to you, rather than mindlessly splurging on stuff you don’t need.
Living frugally has been a habit I have adopted for a while now, and I must say it has truly paid off. By diligently budgeting and living a frugal lifestyle, I’ve been able to allocate more of my income towards savings.
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- Successful savers pay themselves first.
When you pay yourself first, you are essentially treating your savings like any other expense that needs to be paid. Instead of waiting until the end of the month to see if there is any money left to save, you make saving a priority by setting aside a portion of your income as soon as you receive it.
By paying yourself first, you’re taking control of your money and making saving a non-negotiable part of your budget. It helps you avoid unnecessary purchases and become more mindful of your financial choices.
Many people believe that they need to save a large amount of money to pay themselves first. This is not necessarily the case. Even saving a small amount consistently can add over time. Whether you’re able to set aside $5, $10, or $50 each month, every little bit helps.
Starting small can also make it easier to stick to your savings plan, as you won’t get overwhelmed by the amount you put aside each month. By taking small steps and staying consistent, you can build momentum and watch your savings grow.
- Successful savers automate their savings.
It may sound like a big word, but automation can make saving money easier for you.
When you automate your savings, you set up a system where a certain amount of money is transferred from your checking account to your savings account on a regular basis, without you having to do anything manually. You don’t have to remember to transfer money to your savings account every month because it’s done for you. This can help you consistently save money without even thinking about it.
So, how do you automate your savings? It’s pretty easy. Most banks offer the option to set up automatic transfers from your checking account to your savings account. You can choose how much to transfer and how often to transfer it.
- Successful savers look for ways to cut costs.
Cutting costs means finding ways to spend less money on things you need or want.
One of the easiest ways to start cutting costs is by taking a look at your everyday expenses. Do you really need that expensive latte in the morning, or could you make coffee at home instead? The same goes for eating out—preparing meals at home can save you a lot of money in the long run.
Another area where you can cut costs is your monthly bills. Take a look at your cable packages, streaming services, and cellphone plans. Are there any services you can do without, or can you switch to a cheaper plan? By doing a little research and making some changes, you can eliminate unnecessary expenses and save hundreds of dollars each year.
When you cut costs, you free up more money for saving. While it may not seem like much at first, those small savings can add up over time.
- Successful savers seek out opportunities to increase their income.
When you have more money coming in, it becomes easier to save comfortably. With a higher income, you can put away a little bit each month while still having enough to cover your day-to-day expenses.
One way to make more money is by looking for side hustles. Whether you are looking to save for an important purchase or just give yourself a little extra financial cushion, having a side hustle can help you achieve your goals.
If you have skills like writing, web development, or graphic design, you can offer your services on freelancing platforms like Upwork or Fiverr. If you’re a crafty person, you can sell handmade crafts on websites like Etsy.It’s a fun way to get creative and make some extra money at the same time. One of the biggest advantages of having a side hustle is the flexibility it offers. This flexibility means that you can tailor your work hours around your family’s needs, making it easier to juggle both your job and your responsibilities at home.
- Successful savers stay consistent.
People who are good at saving money understand that it takes time and commitment to reach their goals. So, if you want to be successful at saving, you need to be consistent.
Consistency is key when it comes to saving money. It’s not enough to save occasionally or only when it’s convenient. To make a real impact on your finances, you need to develop a consistent saving habit. This means setting aside a portion of your income regularly, whether it’s on a weekly or monthly basis.
By consistently saving a set amount of money, you can train your mind to prioritize saving over spending. Over time, this can become second nature, making it easier to stick to your savings goals.
Final Thoughts
Saving money is definitely not an easy path. There are a lot of hurdles that can trip you up along the way. Bills pile up, unexpected expenses come out of nowhere, and it seems like every time you turn around, you’re spending money on something else.
However, by changing your perspective on money and developing good habits, you can start saving money and set yourself up for a financially secure future.
