Are you seeking to grow your savings? Everyone feels good when they have huge savings in their bank account. With such savings, you can clear your debts, go for holidays, and live your desirable life. However, saving is an easy term but hard to practice.
Like other behaviors, you need to cultivate a saving culture. This means that you must take charge of your spending and cut off unnecessary expenses. With dwindling earnings, especially in the Covid-19 era, saving can be a hard tackle. But you must save if you have a dream of growing your wealth. Here are some simple ways you can apply to improve your saving culture:
Have realistic saving goals
One reason why many people fail in saving is setting unrealistic goals. For instance, you find a person earning $20,000 per month stating that they will be saving $15,000 each month. Unless you have other sources of income, such a goal is unattainable. It is impossible to save two-third of your income. See how you are doing in relation to others in savings in the UK with the Office of National Statistics.
Having unrealistic goals kills your saving habit in the long run. So, if you want to build a long-lasting saving culture, you should consider being realistic. Save at least 10% of your income. Such an amount is sustainable and will not pinch your entire budget.
Consider automating your savings
Everyone has a good intention of saving some money until they receive it. People will always have a plan to save a certain amount at the end of each month. However, when the cash is in the bank, the saving plan remains as a plan. They budget for each coin leaving nothing to go to the savings account.
One way to improve your saving culture is automation. Automate your account to deduct a given percentage and direct it to your savings account. This aspect makes saving your priority. With this approach, you will rarely miss achieving your savings goals.
Go for a fixed savings account
For some people, saving is not a problem. The issue is how long the money remains on the account. People with a saving culture problem will deposit their cash in a savings account today and withdraw it in the week. In the end, they will always have an empty savings account.
If you fall into this category, you can consider going for a fixed savings account. This account comes with limitations on when you can withdraw cash deposited in them. Some even do not allow withdrawal until the maturity period is over. Operating such an account will teach you patience. But be wise when choosing such an account. As savings rates are tumbling in the UK, as reported by The Guardian.
Did you achieve your saving goals? Like winning a race or challenge, rewarding yourself is crucial when you achieve your savings goals. Take yourself for a treat or king-size dinner. Also, you can buy yourself a new pair of shoes or clothes. By rewarding yourself for the small strides, you will motivate and inspire the saving culture.
In a word, it is not hard to improve your saving culture. All you need is to practice the above aspects. This way, you will learn to save a percentage of every coin you earn or receive.