Developing a healthy savings habit is vital to financial freedom. However, many people neglect the habit of saving money in lieu of paying all their bills and having more month left at the end of their money. So, how do you develop a healthy habit of saving? Here are five ways to jump start your savings and make it a habit that sticks.
Begin saving by starting with a small goal such as $1 a day. This is $30 a month. The goal does not seem too daunting and will allow you to begin developing the habit without too much of a crunch in your budget. This could be as simple as placing one dollar’s worth of change in a jar daily.
Pretend Like You Are Paying a Bill
When I first started saving, I viewed the savings goal as a bill each month. I placed the amount in my monthly budget and deducted it from my checking account just as I would do with my electric or phone bill.
Set Up an Automatic Draft
You can set up an automatic draft from your checking to your savings account each month or bi-weekly. Try deducting $15 every payday automatically or $30 the 5th of every month. With this strategy, the money is automatically transferred without you even thinking about it. Thus, the barrier of yourself is removed.
Increase Your Savings Every Time You Receive a Raise
There is an old adage that states that the more you make, the more you spend. This is so true. You are probably making more money than you were at the age of 16. Are you spending more too? By increasing your savings amount, each time you get a raise, you will not miss the money because you never had it before the raise. Just imagine how much you can save over your lifetime if you increase your savings amount for each raise.
Write Out Your Financial Goals
Having financial goals provides you with a reason to save and makes saving easier. One of my goals is to save for a trip to Paris. Every time I think about withdrawing the money from my savings, I remember the reason I am saving. Envisioning myself in Paris keeps me on track with my savings and helps me to make healthy spending decisions so I can continue to save more.