Trick Yourself into Saving Money
We all want financial freedom in our lives but just earning money does not mean financial freedom. A while back I wrote an article about Things I Didn’t Know About Financial Freedom. But to sum it up here, simply put financial freedom is to have enough passive or residual income to cover your living expenses. It means doing what you want when you want, and how you want without worrying where the money is going to come.
Saving is the first step to financial freedom. But how do you save and how do you put away a bunch of money and have your money work by itself to give you more.
Some of us are strong-willed and disciplined with our money, and it’s easy to not spend it all on the cute dress or that make-up you just need to have right now.
But if you are anything like me, you probably find that hard. So, what I like to do if trick myself into saving money. Here is how I do it:
You have heard the saying “out of sight is out of mind” right?! Savings works kind of like that. What I mean is that if you move your money from your current account to a savings account or another account, you don’t see it readily available to you. So, if you don’t see it, you are more likely not to spend it. At the beginning of the month or whenever you get paid, move a chunk of it to another account so that you don’t see it to spend it.
But how do you know how much to put away?
This leads to budgeting. I know budgeting might sound as if you are limiting yourself and most of us don’t want to live like that. Where is the “freedom” in that?
To me, budgeting means permitting myself to spend x amount of money.
Here is how I trick myself into budgeting from a place of abundance and freedom rather than a place of scarcity:
I first track my spending for a few months. (I like to take an average of three months.) See how, how much, and where I spend my money and then work backward. You have to be honest with yourself when you do this. Your goal is to build a safety net of liquid cash, so you need to be honest with yourself if you want to set yourself for success.
If you want to know how I budget here is an article where I share all about it.
The first thing you want to save towards is an Emergency Fund which is typically six to nine months of your living expenses tucked aside which will get you through if you ever find yourself out of a job or in between jobs or while you are setting your business.
You should also start educating yourself on understanding the purpose of savings account and other types of accounts where your money works for you.
You have to be mindful that the season of life you are in will dictate how much you should save. So, if you have a loan or you are going to have a child, how much you save will vary. Be realistic and practical when you are budgeting. Keep your eye on the prize and don’t get down on yourself if you slip up. Being kind to yourself is important.
Now I want to know from you, what are some of the ways you trick yourself into saving money. Leave me a comment below and let's get chatting.