When To Start Saving?
It is a question that you may ask yourself, and have never been able to answer. When on earth should you start saving your money?
Now, if you have a high paying job and total financial independence you may never have pondered the dilemma. But of course, for many thousands of us across the globe, saving money is not just a mission, but sometimes a darn right impossible task.
The average American does not even have a sufficient emergency fund to cover the unexpected events life throws our way. So how does one rectify this situation, and when should you start?
The short answer is as soon as humanly possible. It is never too late to start setting aside some money for when situations change and develop. There are in fact a myriad of reasons that having money saved is a good idea – security and comfort notwithstanding.
So now you know it’s time to start, where do you begin? Follow these 3 simple steps to money-saving greatness:
1. Budget and Plan
Deciding to start saving money is a noble task – after all its a hell of a lot easier to spend it. And for the comfort and wellbeing of your family, having a little extra set aside is a fabulous idea.
So start with a budget. Easier said than done, I know. Immediately after University, I had £3000 worth of student debt and mounting interest rates. your budget should first cover the ability to pay off debt.
Debt is more expensive the longer you leave it. So budget you’re spending to ensure this is paid off – in full. I managed it within 6 months by not going out and being frugal with everything. Life gets easier though!
Now you have paid off your debt, your budget can go towards a savings pot. Make sure all your financial obligations are covered for each month, as well as some spending money for some fun (you have to live) and the remaining amount can go into a savings pot (bank account/rob-advisor).
2. Save On What You Spend
One of the best ways to save more money is to save on what you spend. I know this sounds obvious, but if you spend less on the things you already buy, you will have more leftover.
I use cashback, coupons, vouchers, bill audits and other great techniques to save money in my arsenal
Once you have mastered these aspects of spending, the saving becomes a whole lot easier, and more crucially, faster. You will have bank balance that loves you in no time.
This whole process of saving money and being a better saver only works if you believe in the plan.
You need to get your mindset right, and this will take time and effort. In fact, this is probably the barrier that holds most people back. Once you know the reasons why you want to save money, you will continue to ensure you stick with it.
If you feel like you are faltering, don’t beat yourself up. It’s easy to slip into old habits and have a spending splurge. Who doesn’t like a big night out every now and again?
But as long as your mindset is in the right place overall, you can bring yourself back inline and continue your journey.
Saving money is a game you can play, and win. Just follow these three simple steps to be a superstar saver!