by Trusted Advisor
I often find that people I talk to struggle to save on a consistent basis. Life gets in the way; other priorities and emergencies arise and end up swallowing the income that was intended for savings. You may find yourself getting to the end of each month even worse off than you started. Like many things, saving is simply easier said than done.
How do you arrive at the end of each month with a surplus? The crux of it is that saving is a habit, and for most of us, it is not a habit that comes naturally. We need to work to entrench it.
The best way to start your saving habit is with small steps. Create a tiny habit by saving a little each month, and then over time you can grow the amount you save.
You may think that the €10 you save each week by foregoing your Starbucks and making coffee at home is barely making a dent. But it all adds up, and it is important to celebrate the small wins. €10 each week for a year adds up to over €500. And while that may not be enough to buy your dream house – or even your dream cellphone – it’s important to start somewhere.
There are a number of ways you can make small adjustments that will enable you to save. For example, by reducing the junk food and restaurant meals you consume, by thinking carefully about all of your purchases, or by setting up a separate savings account so that you are not tempted to spend the money you have saved.
The key is to stop saying that you want to save more, and start doing something about it – consistently. Start by committing to save 1% of your income each month at the start of each month. Then increase it to 2% and so on. Every little bit counts.
Once you get into the habit of saving – even tiny amounts – you will gain momentum and make progress on your financial journey.