Finance,  Motivation

Ultimate guide to saving money

It’s the beginning of the month and i usually use this time to do my budget for the month. I have tried so many methods before using this system, but nothing really seemed to work. I don’t think creating a budget was a problem, my issue was sticking to it. Many people struggle with sticking to a budget seemingly because it is too rigid, or it might at times seem like a lot of work.

Free printable right at the end 🀍

Why budget?

The importance of having a budget plan can never be overemphasized, it ensures financial security and confidence. It’s easier to fall off the rail when you do not have a solid plan on the ground, so budgetting forces you to have a set goal about your future. This also helps you keep track of your progress and make sure you realize your dreams.

It really does not end there. Ever heard of the phrase ‘live within your means’? Many people don’t even follow that rule. In actual fact, they live above their means and that is extremely dangerous. People abuse their credit cards and clothing accounts without realizing until they are drowning in debt. It becomes difficult to pull yourself out of it because you cannot afford it, of which you should have known from the onset.

Before i started being savvy about my finances, i used to hate looking at my balance. Mainly because i felt that there are things i would like to purchase and i really did not want to scrutinize my spending habits while seeing my money go. It still does happen to this day. No ones perfect anyways.

Financial goals

Setting good financial goals is the first step to managing your money. I have three key things that i always keep in mind when setting financial goals.

  1. Be realistic: As much as you want to live within your means, its important for you to be honest to what you can an can not afford. Do not oversell your dreams and set ridiculous goals that you know you really can’t achieve in a short space of time. It’s pointless to want to save 80% of your income, what are you surviving with in the month?
  2. Set measurable goals: How much do you want to save and by when? Are you a weekly saver, monthly or even yearly? Give a time frame and then start tracking your progress.
  3. Write them down: Put a stamp to that paper and hold yourself accountable. I like journaling my goals down, it makes it even more significant. Giving me that extra push.

Have a plan of action

So you now know what you are saving for and how much you are willing to put away? How do you plan on actually doing it? There are a number of ways to put that into action.

Are you going to manually transfer the funds into a savings account? or you prefer an automatic debit order? Usually, automatic debit orders work best when it comes to committing to saving a certain portion. However, if you are a self motivated and know what you really want, a manual transfer is also a good option. Especially if the amount you save each month differs. Sometimes you could even transfer funds weekly or biweekly. It’s all up to you. You could even manually chuck in your disposable income at the end of the month.

How do you stay motivated?

As i have mentioned earlier that many people start of good then they eventually fall of or lose interest. So how do you stay motivated to save until you reach your goal?

Find a system that works for you

Trial and error is a good way to start. If something is not working for you, change it. Learn from your past mistakes and move on.

Seek financial information

Engage with financially like-minded people. Share tips and tricks. Read more, attend finance events and again learn from mistakes.

Start small

There is really no harm in starting small and working your way up. Do not set unattainable goals that are unrealistic only to then start stressing and find it more of a burden. Saving money shouldn’t bring you stress.

Creating a budget

I think this is where a lot of us get it wrong at times. Drawing a budget is the way to start and it is important for you to be honest to yourself. Transparency is the key to making a budget that works. Remember, every penny counts. At the end of the day all you need when trying to create a budget is the numbers for where all your money goes. Whether its in or out. We have formulated a one page monthly budget sheet to help you get started. Don’t worry its free. see below.

xoxo

images are not of lolittah

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