Investing is a fantastic way to create wealth and safeguard your financial security and it’s a good idea to start saving sooner than later. The most difficult part is overcoming our perceived obstacles towards saving.
Our excuses are our biggest barriers to saving
For the majority of people around the world, times are tough and the thought of adding another ‘expense’ to a tight budget may seem impossible. However, if you start to slowly and methodically develop a habit to save for retirement and turn that into part of your lifestyle, it can make a huge difference to your financial future.
A great way to start is to take a look at your current spending habits and from there, begin a spending detox – a process through which you rid yourself of excessive, unnecessary spending habits. Focus on what you need and not what you want. The problem of unnecessary or excessive spending is perpetuated by our enjoyment of instant gratification, and it’s a mind-set that needs to change.
By practicing a spending detox, you’ll be taking back control of wasteful spending and breaking the habit of swiping your credit card unnecessarily. It’s understandable that going cold turkey is not the best approach, but rather a gradual change in your attitude towards spending.
Follow these 5 easy steps to start saving:
Step 1 – Find an accountability partner
It’s always easier to make a change – and stick to it – if you have someone to help you along the way. Ask a friend who also wants to start saving money and go on the journey together, one step at a time.
Step 2 – Find somewhere safe to store money you are not spending
It’s a good idea to ensure you have a place to store the money you are saving so that you’re not tempted to spend it. You don’t have to overcomplicate this; it can be an envelope or a separate savings account. This is just a short-term measure to prove that you are committed to the change.
Step 3 – Take control
If, in the next two weeks, you feel tempted to buy an item that you don’t need, remember that you are in control. Rather draw the money and store it in your safe spot or transfer it to your separate savings account. Small changes such as not buying lunch at work every day or purchasing a new pair of shoes because they were on sale are good examples of a change in behaviour. Once again, focus only on what you need.
Step 4 – Tally up
At the end of the two weeks, record how much you have saved. Now you can gauge whether you can save even more. Set a new challenge for yourself.
Step 5 – Make the cents work for you
As you work through this process, start to think about financial goals and the sacrifices you are making will feel more meaningful.
