Savings

The psychology of saving

You may have heard all types of saving tips over the years, but it is your mindset that will make a real difference in achieving your financial aspirations. Here are a few different ways to change your mentality about saving.

The secret of your future is hidden in your daily routine

You need to make saving a part of your daily and weekly routine. Consistency will allow you to get used to the fact that a certain amount of money is leaving your account.

You can set up an automatic payment so you are not even tempted to spend that money, and MoneySmart suggests that you use a savings calculator to help you do the maths. This is training your brain, it takes patience, consistency and hard work, but the results are rewarding.

Managing your paycheck

You can’t spend more than you have, sounds easy right? Well, it’s actually quite hard but it can be made easier by managing the flow of cash in and out of your bank account.

Every time you are paid, give yourself a set amount for everything, including entertainment, food, and personal bills. Your rent and household bills should already be set up as an automatic payment so everything extra you spend is purely for the lifestyle you choose to lead. Make sure your daily budget is set at a certain amount. If there is anything left over at the end of the day, even if it is a few dollars, put it in the savings account.

Set goals and celebrate your achievements.

It is important to celebrate your wins, even if it is just a good old fashioned pat on the back. When you set achievement goals with your saving, positive reinforcement will keep you going even if you’re running on empty. You should start small at the beginning and then slowly but surely increase the amount of savings weekly, even if it is just $1. Just save something, it doesn’t have to be a large amount.

It is hard to change your mindset around life choices, especially your finances. But if you are continuous and make saving part of your daily routine, you can achieve your dreams. Talk to the team at Police Bank for advice and information on more great ways to save.