How to build the habit of saving money

A 75 year old billionaire once told me that his secret of wealth is his ability to save and invest his funds when he was young. He said he made it a point of duty to save 25% of his monthly salary. He was not only saving his money when he was young, he was also investing in stocks and real estates. Today he is a billionaire.

Are you struggling to save money? If yes, this blog post is for you.

How you can develop your savings habit

You can develop your savings habit by embracing the strategies below:

Take responsibility for your unhealthy spending habit

The first step in building the habit of saving money is to accept that you have not been saving enough money. Probably, you have even been over spending. Once you establish this fact, you can then vow to start saving money.

You need to pick a period of time you will use as savings reference. It is always easier to save every month if you are a salary earner.

Draw up a budget

Having a clear budget is a fantastic way to show how you will spend your income. Your budget will show the items you intend to spend your income on in a specified period of time. Once you draw up a budget, you can easily know the amount of money you will like to save every month. You can also amend the budget to accommodate your budgeted savings sum.

Ask people who hardly save if they have a budget, there is a high tendency that a lot of them will answer in the negative.

Define a specific percentage of your earnings you will save monthly

This has worked for me. I choose a percentage of my monthly income I will like to save. You can save say 10% or 15% or 25% or any percentage of your income that is convenient for you.

I do not save a stated amount of money monthly. I stick to saving a specific percentage of my monthly income. I believe this can also work for you.

Have the discipline to say No

You should also have the discipline to follow through the savings target you set for yourself. Do not amend the target, strive hard and meet your savings goals.

Discipline is key in life; most high achievers will tell you that the ability to discipline themselves made them successful.

Open a savings account and set up a standing order

Opening a bank account solely for saving money can be a good strategy you can use to develop your savings habit. Go a step further by setting up a standing order so that your bank account will be debited with the funds you want to be transferred to your savings account monthly.

Return your credit cards

Credit cards can be tempting; you tend to spend more when you see your credit card around you. When you spend more on your credit card, your repayment will be higher and you will be less likely to save.

Returning all your credit cards or most of them will save you the temptation of spending carelessly. You are also likely to save more when you do not have credit cards.

Buy only after a good bargain has been struck

Price haggling is a good strategy you can use to save money. Strike good bargains and pay the lowest possible price for any product. Do not pay at the mention of the first price of a product, ask for a bargain.

How did you develop your savings habit? Why not share your experiences with us in the comments section.

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