Financial freedom can only be achieved by mastering the art of financial discipline. Anyone who wants to improve their financial situation should learn how to save money regularly, regardless of your income.
Many people struggle to achieve this seemingly simple goal of saving money on a regular basis. While some people are able to save quickly, many don’t have the discipline to keep their money aside long enough to reap the benefits of having substantial savings.
If you’re willing to take five small steps and be patient, the habit of saving money consistently can be easily mastered.
1. Take Care of Yourself
Your pay check should be viewed as a bill, or a debt. Your savings account should be treated in the same way as you would pay your bill.
2. Automated Deductions
Automatic deductions from your bank are the best way to add money to your accounts. Simply decide how much you want to save and when you want it to be deposited. The bank will then transfer the money from the checking account to your savings. This method allows you to keep the money hidden so that you don’t feel the need to spend.
3. Keep the Change
It’s a fun way to save money and keep track of the change you have collected each day. Every day, I bring all the money I’ve accumulated over the day to my home and place it in a bag. I bring the coins to the coin machine, where I do my grocery shopping. I then cash them in. It takes six to one year to accumulate the coins. Surprisingly, this simple method can net several hundred dollars each time.
4. You can pay yourself interest
You should pay attention to the date that interest is credited to savings accounts that pay interest. Transfer or add money to your savings account when the bank’s interest appears. You can add money to increase your savings to the next multiple of ten.
5. Unexpected Savings
Unexpected money is always a nice surprise. This could be a tax return, reimbursement, bonus, or gift. Unexpected money is money you didn’t plan to have. You can spend some and keep the rest in savings.
It is important to not overextend yourself when you start a savings plan. It is a waste of money to put money into a savings account and then withdraw it the next month. It is important to save money and not use it. This is what many people struggle to grasp. Financial freedom is not worrying about unplanned emergencies, so it’s important to have a large amount of money saved.
It doesn’t matter how much money you save, it does not matter. This goal is to make a habit of saving a percentage of your earnings every day.