With the new year just around the corner, it’s never been a better time to think about those resolutions. However, skip the fad diets and joining the gym, now’s the perfect time to get into better savings habits to help secure your financial future. The rise of living costs often means that savings go out the window. However, they aren’t totally out of reach if you take a slightly different approach. Take a look at some of the best ways to get to grips with savings so you can put more away for a rainy day.
There’s no point in starting anything unless you have a clear goal. That might be a family holiday, money for retirement or just a few quid in the pot for emergencies, but whatever your goals make them specific. It’s all well and good saying you want to save money, but unless you get down to the bare bones, you’ll have a never-ending target that feels impossible to reach. Try setting a specific money goal, for example, X amount by X date. Once you’ve reached that target, move the goalposts to achieve another goal. Remember goals don’t have to be set in stone either, some circumstances change, so beating yourself up for not hitting the target right away will demotivate you in the long term.
Treat it like a bill
Much like the direct debits you have that come out every month, why not treat your savings the same. As soon as you get paid or straight after, have a standing order set up to go into your savings account. Decide on the figure that you can comfortably afford and just think it’s like every other bill leaving your account. Once it’s out of your account, there’ll be less temptation to spend it, and you’ll have a regular amount going into your savings each month.
It’s not just savings that secure your financial future; it’s insurance too. Insurance can protect your investments and savings, plus policies such as life insurance will also ensure you are covered should anything happen. Thinking about the future also involves considering pension savings. These can help you carry on your regular lifestyle without interruption and gives you a specific income each month to budget with. Protecting your financial future is often not just about you but also your family too.
Think about needs and wants
There is so much temptation around us these days that determine what we need and want that can be challenging. Some people perceive needs and wants differently too, as one person may feel they need a holiday, while others think this is a nice to have if money allows. It’s not saying either is correct, however, thinking about how you personally feel about needs and wants will put your savings goals into perspective.
Getting into better savings habits can be challenging if you have several external obstacles to overcome. However, just making small changes to your savings pot will help boost your motivation to keep it going into the next decade.
What are your goals for saving money in 2020?