Struggling To Save Money, Here's How To Develop A Healthy Savings Mentality

It is important to develop a positive relationship with saving money and one key step towards this goal is to start small, but start early.

Life is difficult in an aspirational economy. Monthly salaries for the majority of the workforce starting out in their first job are often meagre, however, that doesn't stop us from desiring a fulfilling lifestyle, that enriches not just our pockets but also our health and soul. With inflation in the ascendency, even experienced employees in the workforce live paycheck to paycheck many times. 

Is it a cultural problem or an economic one? Or is it a problem of lifestyle? While that might be a question for another debate, the fact remains that we need to equip ourselves to deal with today’s dynamic and volatile economy. One possible solution to this problem might lie in our attitude towards savings and money. 

Start Small, Start Early

The primary thing to remember is to start early even if you are starting small. While one should have big goals and financial targets set in mind, there is no harm in starting small. By limiting ourselves to a minimum limit, we often delay our savings process. Even if you can spare Rs 500 per month, you should start doing it as soon as you start earning as the power of compounding really takes savings to the next level. Also, it helps develop the habit of saving. 

Set A Budget

It is very important to put down a clear and precise budget for yourself. Budgeting is a skill for life and it is something every individual can do, irrespective of their income or savings balance. Putting down your basic expenses like rent, food, transportation, and electricity in a budget format, helps provide clarity as to how much disposable income you have in your hands. It also helps you avoid any dire situations which arise from a lack of planning. 

Schedule Outings

Once you get into the habit of saving some portion of your income and creating a budget for yourself, you should start looking into planning your miscellaneous expenses. Budgeting helps keep track of our necessary expenditures, but we often don’t realise how much we end up spending on shopping trips and dinner outings. To avoid feeling that burden on your pocket, plan your outings. While we all have impromptu plans, try to schedule as much of your miscellaneous expenses as possible. One important question to ask yourself while spending is whether you are spending on a want or a need. Once we have clarity on this response, we can plan the proportion of miscellaneous expenses that can be allotted to wants and needs separately. 

Savings Buddy

In this world of social media, we don’t do anything alone. Similarly, saving money or planning financial milestones need not be done alone either. Find friends, family, or your partner to have these savings conversations with so that you both can encourage each other to make sound financial decisions. Act as checks and reminders for each other to help mutually achieve your financial goals together. 

Use Cash

If you are an impulsive spender, limit your online transactions. Start using cash more frequently so that even if you get an urge to spend more than your budget, you can check yourself by allowing limited exposure to funds. 

We don’t have to become perfect in one day, but it’s all about starting and working every day to develop that positive mindset and relationship with money by implementing these practices.