How To Save When You Think You’re Not Good At Managing Money
Most of us have been told our whole lives how we need to save for the future, and whilst we’re young this mostly goes over our heads. This can sometimes lead us to believing that we’re just bad with money and that this will always be the case, but the good news is, that money management is a skill that can be learned, so if you’re ready to start saving, but are currently feeling like your finances are a bit of a mess and that you’ll never be able to save the way you want to, then in this post, we’re going to share with you just how you can save even if you think you’re not good at managing money.
Set a savings goal:
The first step to start saving successfully is to know what you’re saving for. For example, do you want to buy a house, a car, or perhaps something smaller like a vacation or a computer? What you’re saving for is important to know before you start saving because then you’re going to have something to work towards and will be able to set a real goal to save for. So, if you want to buy a computer that costs $1000, and your salary is just a little over $1000 per month, then you’re going to need to know how much you’re able to save towards this goal and for how long you’ll need to save before you’re able to buy that computer.
Create a budget:
The next step is to make a budget. Having a budget allows you to have a full overview of what you have coming in and going out each month, so then you know how much you can allocate to your savings and if you have to make any kind of cut backs to things that you may not need as much, such as cutting out your morning coffee on the way to work and making some at home instead.
Open a good savings account:
A dedicated account for your savings is key to keeping everything organized and focused, but the thing with savings accounts is that they’re not all made equally, so you need to shop around a bit to find one that really works for you. You can find some that will allow you to access your funds whenever you want, but these are often not the best choice unless you’re a highly disciplined person because you may be tempted to dip into your savings. You also have things like innovative finance isas or high interest savings account, so there are different options, but it’s about finding the right ones for you.
Automate your savings:
Now that you have your savings account set up, the best thing you can do is allocate the savings goal to automatically go to this account from your monthly salary so that you don’t see it, don’t account for it, and aren’t tempted to spend it. After a few months, you’ll almost forget the money is going out and before you know it, you’ll have a big chunk of cash saved.