- Map Out Clear Goals: Determine what your savings goal is at the start of the month and like with every goal, make sure you are specific with what you want to save for and how much you wish to save. Furthermore, putting timelines on your savings targets will discipline your efforts. Make sure your goal is realistic; the more realistic your targets are, the more practical it is to achieve it. Be honest and stay true to the facts.
- Track your Expenses: It is important to constantly track what you are spending so that you can make sure you are still in-line with the goals you set at the start of the month. This will also help you avoid impulse buying.
- Create a Budget and Monitor it: List out all your confirmed and possible expenses. The budget should include every single thing you spend money on monthly. Also, make sure you include a line for miscellaneous as unplanned expenses will pop up from time to time.
- Save Automatically: It’s easier to save if you make it automatic. The money goes out of your day-to-day cash account into another account opened specially for your savings.
- Use your ATM Card with Caution: The convenience of an ATM card comes with its own set of challenges. Yes, it could be a lifesaver but without discipline there is a tendency for it to leave you with less savings than you planned for. It is best to not tie your ATM card to your savings account. Also, avoid using ATMs that are not your bank’s as there are charges tied to the frequency of use of other ATMs.
- Save before Spending:If you truly desire to smash your savings goals, you must exercise prudence with the time you save. The best time to save is as soon as you get your salary. Quickly credit your savings account with the portion you have decided.
By AXA Mansard