Thursday, September 2, 2010

How to Motivate Yourself to Save Money

Mustering up the motivation to start saving can take some effort, especially if you have never set up a savings plan before. In order to start saving it helps to have a specific goal in mind. You also need to have a good overview of your finances and your expenses. It can be difficult in the beginning to create a savings account, but once you start it will be easy to continue.

* Keeping a goal in mind will help motivate you to start saving. Be specific in your goals – do you want a new car in a year or a down payment on a house? By being specific when choosing your goals, you never lose sight of what the money is for. In addition to choosing a goal, be sure to figure out how much you need to save up to meet your goal as this will help to keep you on track.

* Analyze your finances and expenses. This is an important step because it will show you how much you can afford to put away each month. Eliminate any needless expenses. For example, skip eating out and bring a bag lunch to work. Bring your own coffee instead of buying. While these may seem like little sacrifices, chances are they will add up to a nice chunk of change at the end of the month. Instead of spending it, put it in the bank.

* Update your goals as necessary. It is human for us to change our minds about goals. Instead of kicking yourself when you do, just revamp your savings plan to meet that particular change. Sometimes, emergencies happen and we have to use the money we planned to save to take care of the situation. Just continue to save as usual when things return to normal.

* Save your change. It’s pesky and heavy and it’s everywhere, but it is money. Keep your change in an empty jar or buy a special jar to contain it. When the jar is full, wrap the change up and deposit it into your savings account. You will be amazed at how much money you are able to save up just by collecting your change.

It can be difficult to get motivated to save, but it does help when you have a goal in mind. Analyzing your finances and expenses will allow you to see just how much you can afford to put away each month. You can save up by eliminating unnecessary expenses and also by collecting your change and depositing it into your savings account.

Keep your goal in mind when you are saving up, but don’t kick yourself if you get deterred. Simply pick back up where you left off and reward yourself for your hard work.

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