Figuring out the savings strategy you need in your life is key in order to nailing savings to the floor. Personal experience highlighted to me that the allure of money and material things is easy to get sucked into.
You need to ask yourself questions like this:
- Do I need to have it?
- Can I live without it?
- What are the most important things for me to have
- What do I really need?
When you understand your goals, you can start to implement your savings strategy.
Here is one way in which you can do it.
1) Make a list of 5-10 important things you want to achieve in your life. This could be absolutely anything from owning a Mustang convertible to skiing.
2) Assign monetary value to the things you want to achieve. In case of a Mustang, it could be $30,000. Or if you want to save a healthy sum for your retirement, work out how much you can afford to save in your budget.
3) Now is the hard part, saving itself. If you have a job, you may want to consider getting freelance income in order to get you to your savings goal.
It is important to always think of your savings goals in monthly terms. Instead of thinking this year “I will save X amount of pounds”, think this year, “there are 12 months where in which I will save X amount each month on a specified day for my goals.”