Saving is probably one of the most difficult things to do. It is practically coded into our DNA to spend, spend, spend. Inheriting our parent’s bad savings habits, combined with the increasing cost of living and pressure from modern society telling us that instant gratification is the new normal, is what sabotages our best efforts.

We are also under the misconception that to save, we need to put away large sums of cash every month. A small amount every month is a good way to start our savings journey without feeling too much pressure, instead of overcommitting large amounts that ultimately lead to failure.

•    Start with a small amount and work on creating a habit.
•    Open a separate account into which your savings can go.
•    Schedule a direct debit on the day your salary gets paid into your account, so you don’t feel it in your pocket.
•    Every time you get a bonus or increase, commit to putting a portion of it away into the savings before spending it e.g. 10%
•    Adopt the 10% mindset and make it into a habit. This will help stick to your savings goal.
•    A savings pocket can round off purchases and transfer the difference into your savings. You won’t feel it in your pocket, but your savings balance will thank you at the end of the month.

It is important to set savings goals for yourself. It could be for a rainy-day fund, a deposit for a house or that dream vacation. 

The trap is that if the goal is a large one, it is easy to get discouraged in your saving endeavours or lose sight of the huge end goal and use the savings.

Make savings goals into smaller bite size chunks.

•    Try to commit for three months at a time as opposed to a whole year.
•    Reward yourself for small milestones. Like every 3 or 6 months, spoil yourself with a small reward. Positive reinforcement helps keep saving on track.

Your financial advisor can help get your savings on track and create good savings habits. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.