119) How to Start a Savings Habit

119) How to Start a Savings Habit

If you are told to start saving now, you will think that it is going to be tough. You will be thinking something like it is impossible in this economic situation. The common reply you tell others is that you will "wait and see" before wanting to start to invest. 

There can be many reasons for your action.

One reason behind this is that you do not have the savings habit. If you were asked to set aside a sum of money, let's say $100, you will find it difficult to get the $100. You will be thinking that $100 is a big sum, and you cannot set it aside. There are so many expenses and things to buy.

You may had read a quotation regarding Compounding is the 8th Wonder of the World. It is very important to start saving as early as possible. 

Knowing is one thing, doing is another thing altogether.



Here are some ideas you can use. Although the results may vary, hope you can benefit from this sharing.


1) Start Saving Habit the Fun Way.

You need time and determination to start a new habit. The savings habit must be formed as well. Do start with an easy way to save amount. For example, start with $5 per day. Get a bottle, milk can, container or a jar to keep the small amounts. You are required to put in $5, early in the morning before go out to work. To make it more fun, you are required only to put in the money during weekdays. Weekends are optional. Only put in if you feel like it. You can put more anytime, but not lower than $5 per work day.

This is to form the Save First, Spend Later habit. The weekend is to have fun and relax since you are not working. No pressure to put in, although encouraged to put in.

At the end of 1 Month, you would have at least $100 (20days x $5). You will have slightly more because 22 (30days - 8 weekends) working days in a month. 

Reward Yourself for the Success.

Having more than $100 will make you feel like an Over Achiever. 
You are better than what you think you can.


You can Reward yourself with a small celebration treat for the success to save $100. Eg. Ice Cream after 1 month of savings. Be Careful not to over reward yourself. 😛


Start to Increase the Amount.

After 1 month, you may feel more confident. You can increase slowly and consistently. Eg. $8 per day for month 2. 
If you put in $8 per day, you will get $160 ($8 x 20 days).


For the month 3, you increase again to $10 per day.
If you put in $10 per day, you will get $200 ($10 x 20 days).

Once you hit $200 per month, you will get $2400 per year. 
Once you hit $250 per month, you will get $3000 per year.  

You will see that it only takes a small change in your habit to make a big difference.

 
 2) Have a GOOD Reason to Start.

To form a good habit, you must have a GOOD reason to do it. Understand the BIG Why... The main reason for you to do something. 

The Bigger the Why, the Stronger the Motivation.

Ask yourself, "Why are you doing the savings?". Is it for your son's education fund, your down payment for your dream house, a holiday with your spouse, your own retirement fund? 

The stronger or bigger the reason, the stronger the motivation. You will be more determined to achieve your goals. It will be more powerful if the goal is for your loved ones. 

If it is only to benefit yourself, you are more likely to abandon the savings habit. If it is for yourself, you can give excuses to yourself that you cannot achieve it. Anyway, nobody else is affected. So, no big deal if not achieved.

Love is a Powerful force. Many people will be willing to sacrifice for their loved ones, even much more than for themselves. Make sure the goal for somebody else because you love them.