Self-Service: 6 Tips to Paying Yourself First

It’s hard to create savings, but even harder to maintain them. The secret lies in letting yourself in on the fun; letting yourself experience the fruits of your hard-earned labor is a good way of creating intent to keep your savings going.

Here are some tips to keep growing your personal fortune:

  • Create some self-goals. It’s easier to save when you’ve got a reason behind why you’re saving money. Is it for new shoes? New clothes? That new car or good home you’ve been wanting? Whatever the reason, it also becomes easier—it even becomes a habit—if you’ve got well-defined goals on why you save.
  • Make a real budget. Once you have goals, break everything down into budgets. You should include savings as a part of this budget, and stick to these plans.
  • Create a budget plan. These budgets should be followed to the letter, unless you don’t want to realize your goals. If you have a set amount for an expense, don’t go over it.
  • Do you need it vs. Do you want it. Defining your needs against your wants will help you avoid unnecessary expenses. When a new phone comes out, do you need to buy it or does your old one work just fine? Decisions like these should make it easy to skimp on buying.
  • Create a second account, and then forget it. It also helps to create an account separate of your active one. This works like a piggy bank, where you only touch the funds when you really, really need it. An added bonus is when the bank account grows over time with interests.
  • Stick to benefits. An added technique is to avail of the benefits offered at your job. Not having to pay for this allots more money to your personal savings and other expenses.

It’s not easy to avoid buying on impulse or feeling like you deserve something. Sticking to your financial goals, and following them through, though, helps a lot in avoiding ‘impulse buying’ and other expenses.

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