If you thought you did it all to save money and nothing happened, change your mindset. How?
First and foremost, start by clearing all of your debt records — credit card, bank financing, office loans, and other things that are expected to be paid back with interest. Only after you have fully paid all of your debts can you successfully start to save. Ok, let’s begin these psychological tricks.
- Be focused. You have to have that strong determination as your motivation to save — no ifs or buts. No procrastination or delaying tactics.
- Have a list. On a sheet of paper, write on the left side all that you ‘need.’ On the right, all that you ‘want.’ Need means all the things and services for you to function properly — home, food, clothing, medical requirements, gadgets for work, and more. Wants means anything or service you can live without — designer bags, new cellphone, gourmet coffee, spa, and so on. Study closely all your ‘wants’ and remove those that you don’t ‘need.’
- Save. On payday, separate money for payables such as water, electricity, rent, wifi, including budget for food, transportation, or gas. Divide into two the remaining money. Half goes to personal budget; the other half into the bank. And forget about it.
- Put ‘Motivation Name.’ If the purpose of your savings is for your children’s future or for a dream house, name it — for Michael’s studies, for our ‘mansion,’ for retirement, and so on.
- Pay in cash. Avoid using credit cards. When you pay in cash, you are aware that your money is decreasing and you can think of ways to manage your finances. Unlike when you pay using credit cards, you are unaware until it shocks you when the bill arrives. Maintain just one credit card — or none at all — to avoid making credit purchases.
- Follow the 30-day rule. If you’re eyeing for a new gadget, for example, think first. Wait for 30 days to know if you really need it. Most of the time, one’s perspective changes after several days. Don’t act on impulse.
- Stick to your budget. Have a list ready specially when grocery shopping — and stick to it. Be sure to eat first before hitting the supermarket to avoid buying something you don’t need.
- Avoid online shops. Delete or hide from your phone apps that lure you to spend on something just because it’s cute. Out of sight, out of mind.
- Spend wisely. If it’s something that will help you earn more or will be rewarding to your job, go for it. Example is a new laptop with state-of-the-art tools that may help you move up is a wise spend.
- 50, 20, 10 rule. Think big. If you are saving 10 percent of your salary for the last six months and you think you can do more, increase it to 20 or 30. Every time your pay increases, your savings should also increase — until you can afford to save 50 percent of your earnings every month. If you can maintain this, you can be a millionaire in no time.
Make it a habit to save, however small the amount maybe. It feels good knowing you are financially stable and have something to fall back on in case of emergency or need.
