Saving is an activity everyone should practice regardless of their financial situation and lifestyle. It creates a buffer for these hard times. Or, presents wonderful opportunities when everything aligns. Either way, it’s a hedge with the unpredictable nature of time.
This article will help you understand why saving is valuable and how to “lock in” to a savings mindset. Then, provide a host of ways to save without feeling like you’re sacrificing everything.
The Value of Money & How to Stay Vigilant with Savings
There’s no denying money makes the world go ’round.
You may have found having more money doesn’t make you happy. But, similar studies found a “saturation point” to which having enough money does improve wellbeing and happiness. Usually, the later results from less stress and financial freedom to explore what one wants.
Having enough money today means fewer instances of a downward, financial spiral.
- Getting that cancer checkup finding precursors before it’s malignant
- Fixing dental problems before they’re excruciating and sometimes deadly
- Having a course in higher education helping to align versus aimless progression
Saving money is the core of these beneficial activities done today helping you lead a healthy life later on. The burden is overcoming the immediate need for money — especially when things are tight. This is why we set savings goals.
What goals help people save?
- Financial Independence
These are items offering lifestyle changes.
If we reach them, they’re worth the grind because it pegs us one rung higher. Saving becomes easy when these goals are present versus saving for the sake of the activity. Of course, to each their own — but consider every time you’ve saved effectively and it’s very likely it was attached to a major, lifestyle-changing event.
How to Cut Costs to Reach Financial Milestones and Goals
Two avenues will increase savings:
- Making more
- Saving more
Unfortunately, many wages remain stagnant while inflation grows. One could hop jobs for a raise, but the markets remain laggard — it’s not a viable option for someone stuck in their economic position.
Instead, cut costs:
- Shop Around — Fill your time with comparison shopping for everything. This includes everything from your typical grocery shopping to finding cheap prescription glasses. We’re in the age of globalization and the internet, there’s a very fine chance better discounts are available online if you’re willing to wait for shipping. Plus, it’s likely you could have stores price match competitors if an item is absolutely crucial to have right now.
- Barter — Connect with friends, family, and neighbors to barter goods and services. This includes common items whether it be ingredients for cooking or yard tools, to ride sharing or exchanging services instead of money. Bartering bypasses extra expenses tacked-on by the supply chain. Plus, it creates a network where you and participants aren’t spending money on limited-use items when they could get shared.
- Adjust — There’s a very good chance you’re unable to save money because of your lifestyle. Many people lead happy lives living on minuscule budgets. These budgets may form from moving or adjusting consumer habits, or changing their diet and social influences. It may seem like a sacrifice, but align your life’s goals as and the savings will come naturally — especially if they help you reach these feelings rapidly.
Three items? Well, of course.
Remember, the big saving goals are often attributed to lifestyle changes. Why not align the process with big lifestyle changes too? Shopping around, bartering, and general adjustment will have the greatest impact on your financial goals.
Of course, you should include some of the “easy wins” that’ll grow your savings pot like using high-interest accounts, selling stuff, and keeping loose change. There’s no reason not to do these as they’ll reinforce your decisions.