pig small saving

Saving money can be a difficult task as it requires determination and motivation.

If you want to have an amazing body you need to exercise a lot. You won’t become fit just by thinking of that.

Same situation is with savings. Money in your account won’t appear just by you thinking ‘’I want to save’.

There are hundred different ways of saving money and today I would like to encourage you to start three simple steps, which will help you to start saving.

Step One

  • Take a sheet of paper and list all your monthly income.
  • Afterwards list all your monthly expenses.
  • Divide your expenses into few groups, so it will be easier to understand of how much money you actually spend in each category. 

For example split in groups like:

Living cost (all bills, food, car expenses, transportation to job, insurance, etc.).

Socializing costs (like cinema, meals out, etc.).

Enjoyment (buying new clothes, new makeup, traveling and so on).

  • Ask yourself a question: Can your expenses be reduced in particular category or not?

For example maybe you could consider buying one t-shirt less, fewer nights out, walking on foot to and from job instead of taking bus …

Step Two

  • Decide what amount of money you would like to save each month.

Saving is not about how much you can save each month. It’s all about how much you would want to put aside for your future.

For example I am currently saving for my new digital camera.  Each month I am trying to put aside £50 for it and I am planning to buy it in 6 months for my birthday.

  • Don’t try to push yourself, rather start from a smaller amount. 

In case after a few months you notice that you are capable of saving a bigger amount, you can always try that.

Step Three (very important!)

  • Get a different bank account for your savings. 

Most of us think: ‘’I will keep all of my money in one account, just won’t spend all of it and try to save’’.

However the outcome is opposite most of the time.

The more money you have in your account, the more likely you will have a temptation to buy something or to just spend by impulse.

So, if you plan to start saving money make sure to get a new bank account and:

  • Transfer the amount you wish to save to your savings bank account each month.
  • Keep a record of your monthly income and expenses.  

And two final suggestions/recommendations:

  • Microsoft Excel is a great piece of software to keep all information in one place.
  • If you can’t resist impulse buying, leave your savings account debit card at home when going shopping. 

I believe now you are ready to start saving. Good luck!