7 Simple Steps To Start Saving Money

Money makes the world go round. Money can make life easier. We hear it all the time but not matter how much we have it never seems enough because our spending also increases.
Having worked in a bank, I often came in contact with people asking me the same question.
"How do I start saving money?" It is NOT difficult.
The hardest thing about saving money is just starting! It requires some conscious effort from us and a bit of change in our mindset. That's all.

7 simple steps to start saving today:

1. Record your spending

We all find ourselves with a pocket full of change that just disappears and we have no idea what we spent it on. I am guilty of that for sure.
Create a list of items you purchase every week that will allow you to track what you spend the most money on and include it in your budget.

2. Prepare a Budget

Start with your NET income. List all the outgoings: your rent, gas and electricity, TV, water, phone, subscriptions, loans/credit card payments, insurance, student loan, childcare, gym membership, groceries, regular outings/entertainment. the list is not complete but you get the picture. Add up all your expenses. Take that amount from your net income. If you have any left over money, that what you can save. But if you want to save more... Read on!

2. Do we NEED to pay for all of that?

We often say we need something when we don't actually need it. We just want it. Like a new pair of shoes we saw on sale or a new game that just came out. But really. So many things could we live without! Cutting unnecessary expenses will do miracles to our budget and our savings.

4.  Pay off you debts before you put a penny in your savings

Any debt it is always going to cost us more than what we can earn from saving. This is how banks make money. The interest rate we can get on our savings account is incomparably lower that the cost of our debt. So we need to make sure that the debt is cleared before rush into putting money into saving accounts. Start by clearing the more expensive debt like credit cards, store cards or your overdraft.

5. Set a saving goal

Having a clear objective in mind always helps us stay focused on our tasks. Saving is no different.
We need to think what we are going to save towards and how much time we want to achieve it in to help us keep on saving.

6. Separate your savings

I know it sounds really obvious but having a separate savings account really helps to start saving money. I used to send all the money to my savings account and leave in my current account (checking account) just enough to live off. This taught me self-discipline and control.

7. You don't have to start big

Putting ANY money away is a good start. If we start as low a fiver a month (that's about one take out coffee a month), by the end of the year we will have saved £60. That is better than nothing! And we prove to ourselves that we can do it which in turns encourages us to save more. Because we CAN!

It's time to start saving! 

If you enjoyed reading my post, pass it on, click  LIKE, SHARE  or  FOLLOW buttons.
Is there any topic you would like to read about in particular?
Your opinion is very important to me so please leave a comment under the post.
Thank you for stepping by and hope to see you again soon :)