Many of us would like to have money in savings. Whether it’s for an emergency fund, a once-in-a-lifetime vacation, quitting a job, or simply creating a bit of a buffer between paychecks, having some money set aside can make a huge difference in our ability to reach for our dreams.
But when you’ve got a long way to go before you meet your financial goal, and when – frankly – a dollar spent now seems to provide a lot more pleasure than a dollar saved, how can you make sure you’re motivated enough to put money aside on a regular basis?
Here are five things that could work for you…
1. Save Little And Often
Do you tell yourself that it’s not worth saving if you don’t have at least $100 (or $500, or $1000) to put into a savings account? This is a bit like telling yourself that it’s not worth getting some exercise unless you have a whole day clear to jog.
How about saving just a dollar or two each day? Most of us can cut a couple of dollars of unnecessary spending every day (how about skipping that latte, carpooling, ditching your daily newspaper..?) It’s a tiny amount that you’ll barely notice on a daily basis, but over the course of a year, you’ll have saved several hundred dollars.
2. Read Personal Finance Blogs
I find that I get encouraged to save – and to adopt good financial habits in general – by reading about others’ tips and success. One of my must-read blogs for this is The Simple Dollar; Trent writes very well, and covers topics in-depth without making them too complicated. He also has an upbeat and motivating attitude towards savings and finances (some personal finance blogs can make for rather dour reading).
Other good blogs on personal finance are Get Rich Slowly and Wise Bread.
3. Keep a Savings Log
Something that’s often recommended for those sorting out their finances is to keep a spending log – to write down what you spend, so that you have a clear picture of where all the money is going. I’ve done this in the past, and it’s always revealing (and occasionally a bit horrifying!)
A twist on this, though, is to keep a savings log. Each time you make a deposit into your savings account (or each time you shove a few dollars into the jam jar hidden under your bed), write down the date and how much you saved. This can be a great way to motivate yourself to save more. You could also use your calendar or diary for this.
4. Save Towards A Specific Goal
Having a very clear goal in mind can make it much easier to save up. If you know that you need $1,000 for that new computer, or if you’re determined to reach $5,000 in your emergency fund, focusing on the end goal can keep you motivated.
Your end reward might not be a tangible thing like a vacation or a new purchase: it might be peace of mind, or a sense of security or freedom. Consider visualizing how you’ll feel once you have your target amount in the bank. Will it take a weight off your shoulders? Will you be proud of what you’ve achieved?
5. Automate Your Savings
Finally, if you do find that your motivation waxes and wanes, simply automate your savings. Get your bank to transfer $100 (or $200 or $500 etc) from your checking account into a savings account, at the start of each month. If the money goes out without you having to lift a finger, chances are that you’ll simply let it head off into the savings pot …
There are plenty more ways to motivate yourself to save – so let’s hear some of your best tips in the comments!
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I find a great and fulfilling way to save is through mirolending. Every month my salary comes in, and when that happens I microlend out $25 on Kiva (it needn’t be kiva, there are loads of microlending sites out there). Rather than sitting in a bank, it’s off to help someone improve their life, and I can’t get at it until they pay me back. It’s also very good motivation to know that your money is off to help someone rather than you using it on something frivolous.
Thanks Zara – what a great way to help someone else while building up your savings – I’d not come across microlending before so must check it out!
GREAT advice here — and perfect timing for me too! I have a big trip coming up at the end of the summer and I really want to save some money for it, but I haven’t been doing a very good job of it lately. This post has inspired me to get working on that ASAP. Thank you!
One way to improve your chances of success is to discover how you are perceived by others. Once you know that, you can make adjustments to your behaviors, and improve the quality of your business and personal life. It’s not always easy to find out how you are perceived by others… but I think I have found a way. Perception Analysis has a program called Personal Attributes Inventory that can become the foundation of any self help program. Read about it and let me know what you think!
[...] as much money as possible won’t solve all your problems. It doesn’t make sense to have a stash of cash sitting in a savings account earning measly returns when you’ve got a mortgage (or two) on your [...]
I highly recommend the book The Richest Man in Babylon–it introduces these concepts in a “duh, why didn’t I think about that” way, and forces you to see the points clearly. This post seems to follow up with that concept.
Very well-written; I enjoyed it.
Thanks!
I love the idea of automation. I have recently been over at Ramit’s blog: I Will Teach You to Be Rich…there are some really simple and powerful strategies there for doing this. We currently have an ING account, and have a certain amount automatically deducted each month. It’s painless, and it works!
[...] 5 Ways To Motivate Yourself To Save [...]
When I was in high school I would duct tape a shoe box, cut a slit in the top and throw in random bills every week or so. After a while when something good came along I’d rip it open and see what goodies I could get with it.
I always had more than I thought and allowed for spending spontaneity.
Makes saving more fun than a bank book.
Very good point about having a goal. Sometimes we save and save and don’t stop to realize, we are not doing anything useful with all that money we accumulated. I have seen it way too many times. I counsel people on managing money and it is so interesting that people are programmed to only think about saving, not what they are going to do with their savings.
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