Saving money is an important financial habit that should be prioritized by everyone. However, saving consistently and appropriately can be the true test of your financial endurance.
From the latest gadgets to dealing with the raging cost of living, there are so many things competing for our money these days, that it can be a real struggle to save.
Whether you are saving long-term for retirement or short-term for a bag, you’ll find useful tips to stay motivated In today’s blog. If you have ever needed that extra motivation to stay financially committed, this article is perfect for you.
- Get Specific: Remember your SMART acronym for goal setting, you’d need them here. When saving, you want to be specific about your goal, the target amount and the timeline for accomplishing it. Are you saving towards a car, what kind of car are you looking to purchase? Would you want a brand new or a fairly used model? How much does it cost? Is it way over budget? Would you need extra income to be able to buy this car? Get clear about what you want, and how much it costs. Set a realistic timeline to realize it. The more focused you are, the more connected you’ll be to achieving your goals.
2. State your WHY: There should always be a reason why we save. When you set financial goals, ask yourself what do I stand to gain from accomplishing this? Would it afford my children a better life? Would it afford me better opportunities in the future? Connecting emotionally to the feelings of success would take you closer to your dreams.
3. Get started: The journey of a thousand miles began with a single step. There is no better time to start saving than today, no matter how small, no matter how late, just get started and don’t berate yourself for financial mistakes in the past. If anything, congratulate yourself for trying. I’m rooting for you.
4. Set up your budget: You’ll want to factor in savings into your budget. Begin by determining how your savings goals fit within your budget. How much goes towards your fixed expenses like rent, feeding, and data? Then determine how much you can put towards savings.
A rule of thumb is to set aside at least 20% of your income towards saving and investing. Your savings goals however are dependent on your income and how much goes to your expenses. If you feel that you aren’t saving enough, you might want to supplement your current job with a side hustle.
5. Keep your savings funds separate: It’s easier to dip into your savings when it’s in your expense/transactional account. To avoid this, keep your savings funds separate in a high-yield savings account like HerVest.
An emergency fund is better kept in a liquid savings account so it can be accessed when necessary. Long-term savings goals can be achieved with a locked savings plan, so you don’t lose interest in the long run. Have a savings bucket for each of your financial goals. This way you can track your progress and stay motivated in the long run. In a nutshell, don’t have one account for saving and spending money.
6. Don’t go overboard: When you’re motivated to save, it’s tempting to set unrealistic savings goals. But saving more than you can afford is a set-up for failure in the long run. Don’t deprive yourself of fun and happy moments with an unrealistic budget. Set aside some funds for your wants. Strike a balance between saving and spending wisely.
7. Automate your savings: A smart way to eliminate any roadblock to saving is to automate your savings. By having a particular percentage of your salary automatically transferred to your account, you pay yourself first and don’t leave savings to the last minute. The HerVest app allows you to automate your savings with either your HerVest Purse (Your flexible wallet) or Debit Card. Set up an Automated Savings Plan today.
8. Use vision boards: You might want to have visual representations of success close to you to keep you motivated on your financial journey. A cut from a magazine or a screen saver on your phone or laptop is a great reminder to keep moving when it might seem tough.
9. Celebrate your wins: Success is a series of small wins. When you reach your goals, short-term or long-term, celebrate your success. Saving your first ₦50,000 is as important as your ₦1million. The little drops make the cup of water.
10. Enjoy saving with the HerVest app: The HerVest app makes it convenient to meet your short, mid and long-term goals while earning competitive rewards for doing so. You also get a breakdown of the timeline and the amount it takes to meet your financial goals.
What’s more? Our community of financially savvy women are here to keep you challenged and accountable on your financial journey. Get started here today!
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