Many people are natural-born savers and have no difficulties scaling back on spending and putting the bulk of their income into different savings vehicles. But for other women, saving money can be challenging. You may get into a really good money-saving rhythm initially and then fall back into your old spending habits.
If this sounds like you, there are several small tips you can follow to help you get on track – and stay there until you have reached your goals.
There is a reason many women keep fitness photos of their favorite models or clothing on their refrigerators to encourage them to get in shape. Visualization works. And there is no reason you can’t adopt these same tricks when it comes to saving money. If you’re saving for a down payment on a mortgage, cut out a photo of your dream home and keep it close-by for moments when you’re about to give in to temptation and break your budget.
2. Label your accounts
Paying yourself first is one of the most difficult things to do. When you get your paycheck, you may be tempted to pay your bills first, which is a smart tactic. However, when you see what’s left over, you may be tempted to avoid contributing as much as you should be to savings and spend your hard-earned cash elsewhere. This may result in a longer delay before you reach your respective goals. To prevent this from occurring, personalize different savings accounts for each of your goals and glance at them each time you are paid. When you see that your vacation fund is looking a little sparse, even though it’s coming up in a few months, you may be more likely to contribute to it. In addition, when you are close to reaching your goal of buying a new car, you are more likely to organize your budget around this goal than spending additional income on clothing or nights out.
3. Say “no” to peer pressure
Sometimes the problem with saving money isn’t you – it’s your friends. Hanging out with friends who pressure you to spend can be destructive when it comes to reaching your goals. Weekends away, long lunches, salon trips and pricey shopping trips can prompt you to overspend, leaving little for you to put into savings. Find ways to spend time with friends without breaking the bank. Host potluck dinners, visit free museums and enjoy “game night” at home with friends.