It goes without saying that saving money is a smart financial decision. Savings can act as a safety net for your finances, assist you in reaching both short- and long-term financial objectives, and eventually enable you to live life on your own terms.
Yet, just like eating correctly and exercising, remaining motivated and on track can be tough while saving month after month and year after year. You’ve come to the right place if you’re having trouble saving money.
Here are eight practical techniques to maintain motivation while saving money, direct from financial professionals, from remembering your “why” to finding a balance between spending and saving.
Remember Your Why
Remembering why you want to save in the first place might help you stay motivated, according to Laura Adams, MBA, a personal financial expert with Finder.
“Whether you intend to buy a dream home, put kids through college, retire early, or get a handle on credit card debt, keeping those aims in mind is vital. ., including the, including the s the the s: most, including the s. and and: the s: most probable. the s: most likely and the.ing
Share Your Goals
Financial advisor Dexter Wyckoff with Northwestern Mutual said, “Telling a trustworthy friend, family member, or financial advisor about your goals will help hold you accountable. They may also offer encouragement and support as you work towards your objectives.
Make savings automatic
R.J. Weiss, CFP and founder of The Ways to Wealth, advised, “When you feel inspired to change your finances, take use of that enthusiasm by automating your financial goals.
“Enroll in your employer’s retirement plan, raise your savings contributions, or set up automatic transfers from your checking to your savings account. This streamlines the procedure and helps you keep to your goal without relying solely on willpower. Additionally, it guarantees that your goals are continually pursued even when you lack motivation.
Break down larger aims
It’s imperative to turn long-term financial goals—those lasting longer than a year—into precise, short-term targets, according to Weiss.
“For instance, it may take years to save enough money to buy a house. Your ultimate aim can be attained by setting a short-term goal, such as refraining from dining out for 30 days. Be as explicit as you can while creating short-term goals to ensure success. Stay away from generalisations like, “I hope to save more money this month.”
Set a precise goal instead, such as, “I want to save $500 this month by packing my lunch every day and keeping my entertainment expenses to $50.” In this manner, you have a specific goal that is measurable and doable in a predetermined amount of time.
Take advantage of greater yields.
“Taking advantage of rising interest rates might mean your savings make money for you when it’s just sitting in the bank, and that can be enough encouragement to keep putting money away,” said money-saving expert Andrea Woroch
Making the switch could help you meet your savings objectives considerably more quickly without having to put as much of your own money away, the expert stated. “Compared to the national average interest paid by a regular savings account, which hovers around 0.26%. You’ll be inspired to keep investing in order to increase your passive income once you see your money start to generate profits on its own.
Recognizing achievements helps keep savers motivated, according to Daniel Colston, CEO of Upward Financial Planning and a qualified financial advisor.
“Celebrate your accomplishments each time you reach a savings milestone, such as saving $1,000 or $10,000. This can encourage you to continue saving money and help you stay motivated. We advise rewarding yourself immediately for achieving these milestones in addition to celebrating.
Of course, don’t treat yourself to a new laptop for saving $1,000; instead, use the money on a day doing something you enjoy or going out for drinks with friends.
Colston noted that because saving money might be difficult, it’s necessary to enlist the assistance of friends and family. “Surround yourself with people who can assist hold you accountable and who will support your financial goals.
A financial advisor who can provide direction, support, and even accountability is worth considering joining.
Strike a Balance Between Spending and Saving
Everyone has varied financial needs, according to Curt Martin, a financial consultant and the company’s creator. “Some people find it more challenging than others to stay motivated to save money. There’s a chance that you might give up trying to save entirely if the process gets too tedious.
“For folks who need a small emotional boost, I encourage them to set aside some money on a regular basis that they can spend anyway they like, without any restrictions,” Martin continued. It is expected that this expense will be carefully planned, with limitations on how much and how frequently this money would be used.
In this way, there’s still the benefit of an emotional lift without the recklessness of a sudden shopping binge that could knock your savings plan completely off track.”