Saving money can be a difficult task, if you don’t have a great deal of discipline regarding your spending habits.
And if you live in a country that gives you access to every comfort and amenity, including tax-free income, eating out, a night out, a swanky car, or a nice apartment, it can be especially frustrating to build some semblance of spending discipline in your life.
So, what do you get when you combine a tax-free income, no saving mindset and access to everything your heart desires? Well … basically, HENRYs (High Earners, Not Rich Yet)!
And this happens because the temptation never ends! In such situations, the avenues to spend are so many, that while you have a better current standard of living, planning for the future and for the unexpected can end up taking a back seat. However, when you decide to change your ways and start saving money instead of spending it all, the process will become easier and more rewarding.
It’s important to also note that we are in no way advocating a life of “no spending” … definitely not! Instead, spend mindfully and keeping in mind your family, future and possible uncertainties that may come your way!
Saving – isn’t about living a sacrificial lifestyle and forgoing your personal pleasures. Instead, it’s about making small changes to your spending habits that can end up having a big impact.
The following are a few handy tips on how you can embark on your saving journey:
Prioritise clearing your debts first – interest on loans and credit can eat away at your income
Follow Suzy Welch’s 10-10-10 rule when making a purchase decision – how will you feel about this decision in 10 minutes, 10 months, and 10 years?
Research the best deals and compare prices among different stores. The shopping tab on Google can be a great start.
Take advantage of sales, coupons, and discounts to get the best bang for your buck. Ask yourself, do you really need that luxury purchase now?
Try not to spend money you don’t have – don’t use credit to buy unnecessary things if you cannot pay off your credit card in full each month
Make a budget and stick to it. For example, do you know how much you spend on food each month?
Set yourself simple financial goals.
The more you save now, the easier it gets to save more and meet your goals in the future. Like any other habit, if done consistently over time it will become second nature. When you realise the fruits of your efforts – you will realise they are the sweetest!
If, like many other people, you plan on making a new year’s resolution for a financial goal – don’t be intimidated by it. Because at HAYAH, it doesn’t matter where you are on your savings journey, we’re here with you every step of the way. Keep an eye on our blog and social media channels as we explore the psychology of saving and give you the tools to help you make that all-important first decision to start preparing for your future.