I made a switch in how and when I saved.
I used to pay all the bills and debts first, then spend through the month which usually involved giving and gifting to others including my children, the pets, birthdays etc and then save what was left, if any, at the end of the month.
The problem? There was rarely anything left at the end of the month so my savings didn’t grow and little of my earnings had been spent on things of real value, the rest slipped through my fingers.
So I switched it around. I’d earned less money in the past so I knew I could balance the books on a lower income and I resolved to give to myself first.
So each month on pay day I’d gift myself the first 10% of my earnings, (I’ll share what I do once there another time) and we’d spend from the remainder. If there’s anything extra at on the last day before pay day, that topped up the savings as a bonus and I’d be back to a clean slate for the next month. Easy!
4 Tips for Saving First
1. Use a standing order on payday to automate paying yourself so you can’t forget.
2. Keep your savings away from your current account so you’re not tempted to dip in part way through the month.
3. Create a Purpose for your savings. Imagine What it’s for, When you’ll need it and Why.
4. If 10% feels too much to start with, try 5% and increase it by 1% every few months. Once comfortable with 10% keep increasing it to everything beyond the monthly essentials.
Try it, then get in touch, I’d love to know how it goes!