4 Habits to Save More Money

You walk into a shopping mall full of pretty shoes. You take up a pair of shoes that you really like and look at the price tag, “Woah Expensive!” you probably tried to convince yourself why you don’t need it and finally after a long struggle between your heart and mind, you decided, alright I’ll let it go. I don’t need it for now! 

Yes! That’s the victory of the logical mind. But wait…  

That moment when you slowly put down that shoe, from the edge of your eyes, you notice this word. This magical word that changes every logic you previously had. 

“Sale!” “Sale!” “Sale!” 

You know this is some sales strategy being enforced on you but now all your emotional reasons starts pouring in… 

“It’s only a shoe! I can earn it back. Everyone should invest in themselves!” 

“You deserve this shoe that you really like! It’s limited edition!” 

Well, you must have guessed what happens eventually. You bring it back with you and sooner or later you regret buying it because you have tons of them at home!  

 Let’s talk about some guidelines on how to create a habit to save more money! 

We all know that it takes time for behaviour to become habits, the question is, are we determined enough to build good saving habits?  Remember, when you change your habits, you are probably on your way to changing your life too.  

It is not how much you earn but how much you are able to save that will decide your wealth over the years.

Cultivating good savings habit now is important so that you will be able to gain rewards of having shorter term mortgage, more savings for your children’s education or ensuring that you retire comfortably. Save now before your expenditure gets out of control and you accidentally get yourself into "bad" debts. 

Lets see the 4 steps in detail:

Saving Habits 1: Identify your basic necessities so you know how much to save and spend.

The first step is to start saving money and figure out how much you really need to spend. There are several basic needs we all need. They are food, clothing, housing and transport.  In fact there are many spending tracker apps online for you to use to find out how are you spending your money and from there identify what are the spending items that are really necessary and what can be cut down. 

Saving Habits 2: Automate your savings when you receive your salary

There are facilities now which allow you to set up automatic deductions. You can setup deductions on immediate days after your pay day. This way, you will be able to force yourself to start saving. It is always a good habit to save at least 30% of your income. You can then use these savings to either purchase insurance or do investments. 

Saving Habits 3: Monitor your spending habits and cut down on unnecessary luxuries 

Many of us are spending on things that we don’t really need. Spend time monitoring your spending habits cut down on non-essentials luxury items such as entertainment and dining. In fact, try canceling some existing memberships or subscriptions that you have that are unnecessary.  

Another good advice is to reduce the use of credit card. Credit card has become the primary way many people pay for purchases today. 

Saving Habits 4:  Start creating saving goals

Another great way to save is to start creating saving goals. Start by identifying the different stages in your life where you will need money. Here are some common saving goals people have: 

1. For marriage - How to make it a memorable one? 

2. For retirement - How to maintain the same lifestyle when retired? 

3. For vacation - How to travel comfortably without worrying about liabilities? 

4. For kids education - How to ensure kids start their life with the right foundation?  

 Remember to take these into consideration, things like inflation when calculating your saving goals. Having saving goals allows you to be more focused when it comes to saving money. Start executing them and see the results for yourself. 

Remember, good habits don’t miraculously happen and it is up to you to create it!