Saving is not something you should overthink. The most important savings step is getting started. It’s like the famous swoosh says: just do it!
Overthinking. Analysis paralysis. Perfectionism. Whatever you want to call it, any reason to not start saving is a bad reason. Are you still searching for the best savings account? Or the perfect budget template to plan and track your spending? Or can’t you decide exactly how much of your income you should be saving? These all sound like valid problems to solve, but in reality they can just be an excuse to not save.
The most important thing to do when it comes to saving money, is to start. You can always change the amount you save, transfer your funds to a different savings account and tweak your budgeting and tracking process every month. If you want to wait for everything to be perfect before you start, you will never start.
So now that you have decided to just do it, here are some ideas to get you started:
- Open a savings account, or join a social group like a stokvel, and put away an amount of money every month. It doesn’t matter how much, just get started and be consistent. The best way to be consistent is to automate your savings. If you don’t have to think about saving or have a conversation about it with yourself, it becomes easier to do.
- Pay attention to the small things. How much money do you spend every month on small purchases, such as a coffee or a fat cake you buy on your way to work? Or a drink after work, or a chocolate bar you pick up as you wait to pay for your groceries? Or the takeaway you buy because you forgot what time loadshedding was? You might be shocked to see the number. By simply becoming more mindful about small expenses, you could unlock a significant amount of money to save.
- Treat your savings as if it’s a bill you have to pay. Never allow yourself to think about it as a choice. Just like you have to pay your rent, you have to pay yourself by saving.Think about your money as a weekly wage instead of a monthly salary. Studies show that people who take a weekly view of their money tend to be better at budgeting and saving. Just try, for instance, to plan your grocery shopping on a weekly basis and see what happens.
- When you know you have money coming in soon, pre-commit to saving a pre-determined portion of it. Pre-commitment makes you more likely to keep a higher percentage of your income. Deciding how much money you’ll save in advance shifts the decision-making environment and changes the cues. It helps you take control and think about how you can benefit your future self. Then, when the money comes in, you’ll have already thought about how the savings could benefit your future. It’ll make you more likely to follow through with your savings plan.
