Saving money may seem daunting if you’re not used to it, but it’s a powerful habit that can bring you closer to your dreams and goals. Whether you want to take a trip, buy a home, or simply have a safety net for unexpected expenses, saving money is the foundation of financial security and freedom. Here are some practical and personal tips to help you start
- Believe in yourself
You can do it! Saving money is not reserved for the wealthy or the lucky, it’s a skill that anyone can learn and develop over time. However, it requires a belief in yourself that you can make a change and develop a new habit. Believe that you have the power to take control of your finances and make your dreams come true.
2. Set a vision
What do you want to achieve with your savings? Imagine yourself living your best life and use that as motivation to start saving. Maybe it’s travelling to your dream destination, starting a business, or having a comfortable retirement. Whatever it is, make it vivid and exciting. Create a vision board, write it down, or talk to a friend about it. The more you visualize your goal, the more you will be motivated to save.
3. Take small steps
You don’t have to save a fortune overnight. Start small, even €50 per month is enough in the beginning! Then gradually increase your savings as you get used to the habit. The key is to be consistent and persistent. Make saving a priority and put it on your to-do list. I consistently advice my clients to automate their savings so that a portion of their salary goes directly to their savings account. This way, you won’t have to remember to save, and the money will be out of sight, out of mind. Trust me it works wonders!
4. Embrace your values
What do you truly value in life? Is it experiences, relationships, security, or something else? Use your values as a guide to prioritise your spending and savings. Don’t let society or peer pressure dictate how you use your money. Be intentional and mindful. For example, if you value experiences, you may want to save for a trip instead of buying material possessions. If you value security, you may want to save for an emergency fund instead of spending money on non-essential items.
5. Celebrate your wins
Saving money can be challenging, but it’s also rewarding. Celebrate each milestone you reach, no matter how small. Treat yourself to something you enjoy, like a cup of coffee or a movie. Acknowledge your progress and give yourself credit for your efforts. Also, celebrate your wins with others. Share your achievements with your friends or family, or post them on social media. You may inspire others to start saving too, or find helpful tips and encouragement from others who are on the same journey.
6. Learn from your mistakes
Nobody is perfect, and mistakes are part of the learning process. If you overspend or miss a savings target, don’t beat yourself up. Instead, learn from the experience and adjust your behaviour. Use setbacks as opportunities to grow and improve. For example, if you overspend on groceries, analyse your spending and see where you can cut back or find cheaper alternatives. If you miss a savings target, reassess your budget and see where you can make adjustments.
7. Share your journey
Saving money is not a solitary activity. Share your goals and progress with friends, family, or a supportive community. You may inspire others to start saving too, or find helpful tips and encouragement from others who are on the same journey.
In conclusion, building a savings habit is not just about money, it’s about empowering yourself to live the life you want. Use these tips to start your journey, and remember that it’s never too late to begin. With belief, vision, and persistence, you can make your dreams a reality.
Luca Caruana is the founder of the Money Coaching Hub. Follow his weekly column here and his LinkedIn account for more budgeting hacks. For other money-related columns, check out Luca’s hacks to budget like a pro and how to build an emergency fund.