Money Magazine - How to make saving habit?

Savings go a long way in taking you out of troubles during rainy days but not everyone has enough money saved in their savings account that they can look up to in the time of need. Creating a good savings habit is a must in today’s times because expenses are increasing while salary hikes happen sparingly.

Tips to develop a savings habit:

Spare change jar: Though this is the oldest trick in the book and might not help you save enough money to get you out of a financial havoc, spare change jar is the best way you can make savings a daily part of your life. Whenever you come back home all you need to do is put all your spare change in the jar religiously and you will soon get into a savings habit.

Never throw your bills: Most of the times we make payments using our debit or credit cards and hence we forget how much we had spent last weekend. An ideal practice to keep you reminded of your spending habit so you can save more is to keep hold of all the bills. Keep all your bills at one place and tally all your expenses at the month end.

Make a savings goal: You have to decide an amount that you want to save every month out of your earnings and stick to that amount religiously if you want to develop a good savings habit. Deposit the pre-decided amount every month in a bank account and don’t touch it to make do with any expenses.

Tally at the end of the month: On every last Sunday of the month, make sure you take out all the bills collected over the past month and tally them against the budget you have made for the previous month. If you have stayed within the limits of spending you had previously decided for yourself then reward yourself, if not then make a point to stick to it now.

Open an untouchable savings account: Open a savings account where you can deposit all your saved money every month but do not keep its cheque book or ATM card near you at any time. If you do this your money will safely grow while if you give access to yourself to its ATM card then in all likelihood you will end up spending that money.

Savings is essential because rainy days can come anytime without giving you’re a prior notice and at those times if you do not have cushion of an emergency fund then things can get ugly. Learning how to save money and sticking to a good savings habit is a must for every individual as money can come and go, but money savings habit will always serve you well.