Saving cash isn’t easy.
According to accounting professor Mandy Cheng, people’s savings tend to fall behind because it’s easier to commit to doing something for ‘future you’, rather than make steps to do something right now.
“In the future, we're going to save for retirement, we're going to lose weight, we're going to call our parents more,” she told Yahoo Finance.
“But we often-times forget that our future self is exactly the same person as our present self.”
Also read: How to save $100,000 in 3 years
And if you’re struggling to think of ways to make simply changes to your daily routine that will help you save money, you’re probably not alone.
In Susan Edmunds book Starting Out, Starting Over, she shares nine tips for saving money. Here they are:
Edmunds said a lot of people are wasting money because their finances are a mess - but what does this actually look like?
“Print out your bank statements for the past few months, including all your credit cards and your transaction accounts,” she said.
“Grab a few highlighters and start attacking those statements. It sounds nerdy but by the end of it you’ll be left with something that’s pretty and easy to understand at a glance.”
From there, Edmunds said, you’ll be able to make a new budget that will help you control how your finances will look in the future.
Pay yourself first
This means if you’re putting money into a savings account, do that before you do anything else.
“Don’t wait to see what you have left over at the end of the month,” Edmunds said. “The key is to take the money out of harm’s way as soon as it arrives in your bank account.”
Automate as much of your savings as you can
“Don’t give yourself a chance to think about what you’re going to do with your money. If you know what you need to save, make that happen.”
This is as easy as setting up an automatic transfer from your regular account to a savings account each pay cycle.
Buy a cheap car
“Buy the cheapest car you can handle being seen in,” Edmunds said.
“Money you spend on a car, especially if you pay it of on finance, is usually a waste because they lose value faster than you pay the loan back.”
“Save money by splashing out on things that will retain on increase in value.”
Look at your ‘convenience factor’ charges
Edmunds suggests taking a look things you’re spending money on just because it’s easy, and finding a cheaper option.
“Use a price comparison website or app to check whether you could find an item cheaper elsewhere,” she said.
Don’t keep up with friends
Your friends might be at a different stage of life in terms of their finances, Edmunds said, so don’t try and keep up with them.
“When you’re young and single, there’s a lot of pressure to be social, and it can be expensive,” she said.
“Be honest with your friends about the goals you’re working to and set your appointments on your terms. They might even want to join you on the journey.”
Create a personal credit account
Every time you decide not to buy something, make a note of it, Edmunds said.
“Transfer the money over to your savings account, if you can. Keep a tally of how much money you’ve saved.”
Find a good savings rate
This one’s probably a no-brainer, but finding a good savings rate is crucial to making money on top of your savings.
Get a better return
Much like finding a good savings rate, using a term deposit or a managed fund with a good return rate is equally as important.
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