Let’s face it: We all enjoy spending money on things we want and, sometimes, even on what we don’t need. But as they say, too much of something can harm you. We want to keep money in our accounts to make better financial decisions. According to users on a popular online forum, these tips will help you cultivate a saving and investing addiction.
1. Have a Budget
Working with a budget is an essential rule of engagement for keeping savings. A financial analyst said, “When you see where your money goes, it’s easy to account for the things you purchase and know that you have to leave some money back in your account.” A second user commented, “Budgeting is the kind of decision that goes a long way.”
2. Get a Separate Yields Savings Account, and Don’t Link Your Bank Account to It
On a popular online discussion forum, a user said that what saved her from a savings and investing addiction was getting a separate savings account that didn’t link back to her bank so she couldn’t make any impulsive purchases. The lack of direct access to her money also forced her to plan her spending ahead of time.
3. Have a Credit Card Limit
A user shared that they would overspend easily when their credit card was unlimited. But once he put a cap to it, he knew he wouldn’t be able to go off a specified amount, and this suit dramatically disciplined his spending and investing habits.
4. Forget About Online Banking
I can attest to this one! When my bank account was linked online, I didn’t have to do much other than press a button and have a withdrawal from my bank account in seconds. This didn’t do any favors when saving money in my account. But when I got rid of my online account because of my alarming spending habits, the thought of taking part in a long queue at the ATM left me feeling discouraged, so I chose to stay home.
5. Consider a Credit Union
As you’ll have a percentage of your paycheck going into a credit union account, you’ll guarantee your savings. As most credit unions operate on quarterly annual payouts, you won’t have the luxury of withdrawing and spending money whenever you want.
6. Create an Emergency Fund
On an online discussion forum, a saving expert said, “Having an emergency fund is a therapy because you’ll know that your money is always there at all times.” Most importantly, an emergency fund will keep your stress levels down as you’ll take comfort in knowing that you always have money stashed away for a rainy day.
7. Start Small
The power of starting small cannot be understated! The idea of having savings shouldn’t overwhelm you. Instead, it should excite you! For instance, you could choose to set a $1,000 savings goal. After that, start putting money away slowly until you hit the goal or even surpass it. Micro-saving apps are convenient if you don’t want to save in the bank.
8. Read a Financial Aid Book
Several users recommended the book A Simple Path To Wealth by JL Collins. It covers everything from savings, wise investments, and debt repayments and will motivate you to create a budget. By the time you’re done, you’ll have difficulty talking yourself into spending rather than saving!
9. Think About Purchases
More often than not, impulsive buying has led us down a financial rabbit hole. Assert your needs before purchasing anything. For instance, if you come across a new couch, determine whether you need the couch or the one you already own that could serve you for a couple more years. The goal is to kick reckless spending to the curb and save money, then invest it into something worthwhile.
10. Track, Track, Track!
Track your spending to see how much money is going out against what’s coming in. Unfortunately, we sometimes end up living beyond our means because we spend much more than we can afford. A financial advisor in an online discussion suggested using a tracking app to keep tabs and eliminate fluff from your expenses.
This article was initially published and syndicated by The Cents of Money.