Have you ever looked at your wallet or your bank account balance and wondered, "Where did it all go?" You try to spend less, but something always seems to come up that puts your savings back in ruins. If you're waiting for the right time to start or increase your savings, it will never happen. The best time is right now. Here are some ways to ease into creating new habits to prepare for a rainy day.
1. Track your spendings
The first step to increasing your savings is to know how much and what you spend on. Keep track of everything you spend for a set time, say until your next paycheck. Categorize your spending such as coffee, gas, groceries, and bills in the method most manageable for you. You'll see how you're spending your money at the end of your set time.
2. Set a budget
Now that you know your expenditures, budgeting comes next, naturally. What are some of the unnecessary purchases or impulsive buys? If you have trouble with overspending, try setting your budget with cash for a week at a time. Once it's gone, it's gone. It'll help you think twice about pulling out your wallet.
3. Keep your change
Every penny counts. Small amounts accumulated can make a significant difference. Set a specific amount and see it grow in no time. You can add that to your savings or use it for something enjoyable when you've reached that amount!
4. Manage your Impulses
Impulsive purchases can become devastating to your budget. A good rule to try out is to sleep on it before making the purchase. It's not too late to revisit the store tomorrow. With small things, why not add them to the list to get with your spare change?
5. Reward yourself
You've worked on restraining your impulses, making lists, and keeping your change. It's time to treat yourself! With the hard work you've put into it all, you'll feel more appreciative of your reward. Keep it small, so don't lose the savings you've worked so hard for.