We all have great dreams and things we really want in life but sometimes it just not easy to get them. We have the best intentions of saving some of our salary each month so that we can get what we want but as you well know the unexpected often pops up to take what little money we might have left at the end of the month. So how do we go about saving and ensure that we stick to it.
Here are five tips I think might help.
1. Set yourself a goal or goals: Think big and dream. What is it that you really want or need right now? Stay focused on what you are saving for – is it your child’s education, a new car, a dream holiday or a new house?
2. Keep your saving fund separate: Put a label on your long term savings: the education fund, the holiday fund, the new car fund, etc. Your savings are not designed to be used for ad-hoc expenses like ‘fixing the car’. Have an emergency fund in place for the unexpected, that way you won’t be tempted to ‘dip-into’ the education fund.
3. Take responsibility for your own saving: Take control of building up that lump sum yourself, because unless you win the lottery, no one else will do it for you. Be sure it is something you really want and just do it. It can be hard to keep saving if you don’t take responsibility yourself for it.
4. Make a habit of it: Start saving now and often. Think you can’t afford it? You’ll be surprised how quickly it becomes a good habit you won’t want to break. Put your savings away first, after you’ve paid all the essential such as your mortgage or bills, that way you know what’s left to live on and spend for the rest of the month.
5. Sit back and watch your savings grow: Check your savings regularly, but remember, depending on how your money is invested, that values will rise and fall depending on the performance of the funds you select. The important thing is to ‘keep a level head’, save for the long term and talk to your financial adviser regularly.
Once you’ve got that dream car, that holiday you’ve always wanted to go on or moved house enjoy these things and think about what you will save for next. Don’t break the habit you’ve worked so hard to build because it may not be that easy to start again once you’ve found something else to spend your money on.