Saving money is easy to say but many people find it difficult to start. But when they started saving money, another challenge comes to their way and that is to stick to the plan. So, what are the possible ways on how to develop saving money as a habit?
Defining Habit
According to Merriam-Webster, a habit is
- a way of acting or doing that has become fixed by being repeated often
- a behavior pattern acquired by frequent repetition or physiological exposure that shows itself in regularity or increased facility of performance
- an acquired mode of behavior that has become nearly or completely involuntary
- a usual manner of behavior
Basing on the above definitions, we can say that in order to develop saving money as a habit you need to constantly practice it until it becomes attached to your daily routine. Sounds easy, right?
7 STEPS To Develop Saving Money As A Habit
Decide to make saving money as a habit
It should be the first step. In order for you to develop saving money as a habit, you need to decide. You need to commit to yourself that you want to develop it badly. IF you are not that determined enough, along the way you will go back to your old way – not saving money.
Do not make excuses
No matter what, you need to stick to your plan. Do not give way to your excuses. If you saw an ongoing sale in the mall, do not be tempted by the tags that show a 10-20% discount. Mostly the things that are on sale belong to the wants and not on needs (You should know the difference between the two).
Pinpoint the routine
You need to acquire the routines that can lead you to develop saving money as a habit. Apply those routines daily.
Below are the routines that you can practice:
Pay yourself first
- setting an amount of money first to set aside
- trick yourself, think it as an expense
- automatic transfer, payroll deduction
Record your expenses
- easy to track if you are using electronic cards when paying
- you can list it
- download a mobile app
- at least a month or more, your reference for creating a budget (needs)
Familiarize your spending habits
- try to reduce unnecessary expenses
Set up a Budget
- make a monthly budget
Setting goals
- having goals can motivate you to save
Settle debt
- eliminate your debt
Assess before purchasing
- Think how much you can save before purchasing
- Is it necessary?
Practice discipline
- Learn to say no
- No to unimportant things
- Do I need it?
Inform others
Telling your family members and your friends or posting on social media that you want to develop saving money as a habit can give a positive impact. If they are aware that you are practicing this habit, they can help you in some ways. They can warn you if you are already spending much money. Assist you regarding in your spending manner. They can be “a reminder” and at the same time as “a watcher” to you.
Will to Persevere
You should have a strong will power. In times of obstacles, think about the fruits that you can have if you are able to develop saving money as a habit. Envision your future of what you will become if you already have this habit. Don’t give up until it becomes automatic, that you will not be happy about not saving money.
Take baby steps
You should not aim immediately to big savings. You can start small. Starts at low level of commitment but be consistent. Sooner or later it will become an accustomed behavior. That’s the time you can increase your savings. Remember, before you will able to run you should practice how to crawl.
Reward yourself.
Becoming saving money as a habit should not be pure sacrifices. Reward yourself also. How fulfilling it is to reap the fruits of your small sacrifices? What’s more if it’s in a big scale?
As a whole
Developing saving money as a habit is achievable. The key step is to decide and be firmed about it. Do not look for excuses that can prevent you from saving money. Practice the daily the routines and with the help of your family members and friends you can do it. Have the guts to persevere. Take one step at a time until you can take more steps. Most of all, taste the fruits of your hard work.
In order to develop a habit, you need to constantly do it until it becomes a part of your daily life. Soon you will be doing it unconsciously.
If you want to know what are the effects of not having a habit of saving money. Read it here.
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