3 easy tips to start saving
Let's face it, building savings habits isn't always easy. The temptations are manifold, and before you know it, the end of the month is here and you're no closer to saving than when it started. So here are some ideas that can help you reach your savings goals.
1. Reduce your debts
As a number of debts can carry high credit charges, it might be better to prioritize repaying them over saving. Why? Add up the interest you pay each month on the debt and you will be able to understand its true cost. Once you are free from it, this money can easily be saved in order to carry out your short or long term projects. Paying off debts quickly to avoid credit charges is often the best-paying option for building a better future.
2. Set savings goals
Where do you see yourself in 5 years? Only you know the answer. To integrate the habit of saving into your daily life, it is important to have a long-term vision and to question yourself about the goals you want to achieve. If you need motivation, set goals step by step. Want to buy a house in three years with a 20% down payment? Now you have a target and know what you will need to save each month to reach your goal. The more concrete and clear it is in your mind, the easier it will be to stay focused on your target.
3. Annualize your expenses
How much do you spend per week on your morning coffee at the local merchant? Don't like to pack lunch and prefer to go out to dinner with colleagues? The expenses which may seem trivial to us due to their low cost quickly add up to a considerable amount, when calculated on an annual basis. If buying a meal at work costs $ 10, but making your lunch costs $ 5, you can save $ 1,250 annually for projects that are important to you.
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