Why to we save money? There’s a whole bunch of reasons to it, but we can wrap it up with several ideas. We all have our aims and desires. Some of us like to shop for brand clothing, some people are planning their honeymoon or a simple vacation, and some people simply want to have some extra money on their hands to be extra safe.
Saving money is tough. And there’s a perfectly good reason for it. Of course, every person has their own personal issues, but mostly we like to splurge our money. Or sometimes we can’t bear to say goodbye to it. People don’t have the willpower not to touch the money saved in their piggy bank. Or maybe they have such a difference between income and expenses that they can’t allow themselves to put some money away for the future.
This raises the question, how can we save money?
Well, there are many ways to save money to achieve your dreams, buy a home, buy a car, start a business. Finance lending experts Max Funding say “with your interest payments you’re making your lender rich instead of yourself, why not pay down your debts and save the money instead?”
So here’s our little guide on how to save money:
- Create a savings account
Most obvious step to start with is to create a savings account. No need to add monthly 200 AUD, you can even start with 10 AUD and add some later. As long as you are saving money, you are doing something right.
The benefits of this method include inaccessibility. Why can’t we keep our hands off of our piggy banks? Because they are right in front of us and we can touch them. Banks, however, make sure to save your money and restrain you from touching it until the time comes.
- Online piggy bank
Again with the piggy bank. If you are not up to creating a savings account, you could start off with an online piggy bank. A lot of financial institutions offer piggy bank services.
Here’s how it works. Every time you pay for goods with your credit or debit card, some amount of money (let’s say 1 AUD or 0,5 AUD) will be transferred to your piggy bank. You can choose the amount of money yourself and fix it.
- Keep the change
Do you ever have a feeling of poverty while you go through your extra change? Do you ever feel like the change is useless? Or maybe you often leave them as a tip for cashiers? Then you won’t be able to save money at all.
You need to start appreciating your change and keep them. It’s an old tradition that we learn from our grandparents. Don’t just throw them in your bag and forget about them. Take a special wallet for the coins and put them there. Attach the wallet to your bag, or leave it in the house and fill it up with the smallest change you can find at the end of the day.
- Store your bonuses and extra pay on your savings account
We don’t need bonuses in your everyday life. That’s why we work for our regular salary. Bonuses and extra pay are good, but not necessary, so we can allow ourselves to put them away for some time and save money for the future.
You might want to splurge your bonus money on goods, but try a little patience for a while. You’ll be glad to see your capital grow.
There are many other ways to make it easier to save money. Psychological methods include naming your bank account and your savings account a specific name that describes your aim.
Also, you can use cash-back credit cards, and other. You will thank yourself in the future for being so patient and financially stable.