Your Saving Habit Depends on Your Mindset
Most of us struggle to save more. Somehow, the more we make, the less we seem to save. If that sounds like you, well, you are not alone! With tons of financial obligations to meet such as buying a house, a car, repaying your college loan, and keeping up with the retirement fund, boosting your saving might feel like a far-fetched endeavor.
Although we all having different saving goals, they are all geared towards improving our lives by providing financial security.
The more you set aside for your savings, the faster you realize financial stability.
Keep in mind that the content of your savings account should not be used to attain your financial goals. Instead, it should be used in case of financial emergencies.
Should something happen to you that jeopardizes your regular income or requires spending huge chunks of money, your savings will come in handy.
Unfortunately, saving is not as easy as it sounds thanks to endless temptations sure to come your way.
The more money you make, the stronger the urge to spend more.
Attaining your financial goals means fighting this urge. Either that or you will end up making more money every month but save none or too little of it.
Why is saving more important?
Most people get to the end of the month only to realize they spend more than they had intended to save. In fact, well over half of the American population lives paycheck-to-paycheck.
Keep in mind that most of them make what can be considered as a good salary.
Regardless of how much you make per month, not knowing how much you spend will see you waste tons of money that could have otherwise been saved. This might be in addition to racking up huge credit card debts to maintain your lifestyle.
In a 2016 study by Washington Post, Americans were asked to explain how they could pay for a $400 emergency expense. Shockingly, 46% of the participants said they would either use their credit card or borrow the cash. This is worrying, especially with more statistics suggesting that four in ten
Americans had experienced (or knew someone who had experienced) emergency expensed over the last one year.
The fact that you are reading this post means that you are tired of your emergency savings cushion been just a finance cliché. You want to better prepare for inevitable curveballs that life throws at you every now and then.
There is plenty of talk about enjoying the money you have rather than stacking it in your saving accounts. Did you know that you still enjoy your money and still save more of it?
Of course, the more money you make, the more of it you should enjoy, but to a point.
Spend every dime under your name and you will never achieve the dreams you have for your life.
Emergency expenses are guaranteed to come, and if your only way out is to put them on your credit card, you will soon end up with thousands of dollars in debts.
Preparing from unexpected expenses prevents you from sacrificing other important goals in your life.
What is the big secret to saving more money? Earning more money does not guarantee more savings. So what can you do to increase your savings?
Here are a few suggestions to help you save more money.
It is all in your mind
Your saving habit depends on your mindset. With almost everything seemingly working against our intent to save more especially in the consumerist society that we live in, a change in the mindset might be the all we need to save more.
From a tender age, everyone seems to be encouraging us to spend more.
Your measure of success is based on how much you have. If this is your mindset, then increasing your savings is less likely to happen.
For most people, saving more money is hindered by the amount they make per month. In most cases, they end up spending every penny on their paycheck and saving nothing. This is yet another mindset that needs to change. Small savings are better than no savings at all. Soon this saving habit and small contributions will accumulate into something better.
Lower your spending
Cutting down on your spending is another great way to save more. In fact, this is more important than making more money.
When you scale down your spending, you are forced to make changes in your habits in order to accommodate the savings. Being frugal does not mean you will never spend your money and drain the joy from your life.
Developing new habits is key to keeping your expenses sensibly low. This will, in turn, help you set aside extra cash, which should then go to your savings account. A good start will be to find ways to save on household expenses.
Check your lifestyle and stay in your lane
According to Investopedia.com, one of the five key rules to live a financially strong life is understanding and managing your lifestyle inflation.
This rule is all about increasing your spending with an increase in your income. Lifestyle inflation is when you upgrade your lifestyle after an increase in income. To save more, you must stop this!
Define your lifestyle and saving habit and stick to it. Concentrate on the important things in your life. Identify a lifestyle that is comfortable to you and stick with it.