Yahoo Finance 12 Simple Ways People Go From Spenders to Savers
People often emphasize the importance of saving money, but if you’ve always been more of a spender than a saver, switching up your money habits might seem like a daunting task. Even if you want to start saving more, you might not know how to get started without feeling like you have to overhaul your entire budget or start living a deeply frugal lifestyle.
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Fortunately, there are some easy ways to go from a spender to a saver. Here are some of the big ones.
Start With Simple Savings
Changing your spending habits can be as simple as making a small, realistic savings plan each week or month. You don’t have to go big either — setting aside just $20 or $50 a month can be a great starting goal. What’s important is to get into the habit of saving even a small amount and increasing it over time.
“In my experience, I have found that the best way to finally begin that savings plan is to…mentally prepare to top up your savings weekly or monthly, depending on which works better for you. It would have to become a habit to do this regularly if the plan is to save more,” said Mafe Aclado, general manager of Coupon Snake.
If you’re not sure how much to set aside, Aclado suggested going with a small percentage of your monthly earnings. Again, start with a small percentage and, as you become more comfortable with saving that amount, steadily increase it.
Save Before You Spend
It’s all too easy to spend and then find yourself at the end of the month with little to no money to spare. But if you want to start saving, see if you can set aside some money before spending it.
“Save first before spending each paycheck,” said Scott Neu, financial advisor at Reinke Gray Wealth Management. “Even just 5-10% is great. Out of sight, out of mind — those savings won’t tempt you to spend.”
This approach can also help you build an emergency fund so that you’re prepared in case of unplanned expenses.
Related: 8 Ways You’re Wasting Money at the Grocery Store
Say No to One Purchase at a Time
Another way to become a saver rather than a spender is to start getting into the habit of saying no to purchases you don’t need. It might be tough at first, but it’ll become easier as you get used to it and build discipline.
“Discipline is a muscle. The more you exercise discipline, the easier it becomes to be disciplined in the future,” said Todd Stearn, founder of The Money Manual. “The hardest part is at the beginning. The first time you say no to that impulse purchase or expensive night out is challenging. But over time it gets easier as you prove to yourself that your savings goal is what’s most important to you now.”
Look for Small Savings Whenever You Shop
Saving money doesn’t have to mean that you never get to buy things. If you’re trying to switch up your money habits, look for small ways to save money whenever you purchase something. These little savings add up and can help you reach your own savings goals over time.
“Every time you shop, commit to trying to save on that purchase,” said Trae Bodge, smart shopping expert at TrueTrae. “One of the easiest ways to do this is making sure you [are] using your credit cards wisely by earning cashback on every purchase. If you realize that your credit cards don’t offer cashback, switch to a general cashback card.”
For example, say you have a credit card that offers 2% cash back on all purchases. You can apply that 2% toward your future bills or you could deposit it into a savings account.
Automate Your Savings
Having to manually save money can be tough, especially if you’re new to it. By automating your savings contributions, you might have better success achieving your savings goals.
“Set up your direct deposit to go directly into your savings, investments, and retirement accounts,” said Jen Reid, financial planner at Fresh Starts Registry. “The less you see the money available in your checking account, the less likely you are to spend it.”
Reward Yourself for Achieving Milestones
Saving money can feel overwhelming, but one way to get into the habit is to reward yourself for achieving certain milestones along the way.
“For those that are driven by rewards, having a reward with a checkpoint…can be a way to create positive reinforcement and maximize one’s chances of success,” said Sebastian Jania, owner of Ontario Property Buyers.
Set your own checkpoints, milestones and rewards based on what keeps you motivated to save.
Use Cash
Using cash can be a great way to stick to a budget and resist the temptation to spend money. This, in turn, can help you save more. Reid suggested using the envelope system to do this.
“If you are an impulsive spender or don’t like to ‘budget,’ using cash can be an easy option to have money that is available,” said Reid. Plus, it can give you a clearer idea of how much money you have left over every week or month. “At the beginning of each paycheck, distribute the amount of money you are allowing yourself to spend in each category.”
After that, deposit any savings into a secure account, such as a high-yield savings account. If you end up spending more than you meant to, adjust your budget or look for other ways to cut down on costs.
View Saving as an Expense
If you’ve already got a budget with your various expenses, consider adding a regular savings goal to that list. This can help keep your savings on track, while making it easier to spend a little less.
“Treat your savings goal like a bill, including the amount you want to save in your monthly budget,” said Traci S. Williams, certified financial therapist at Poui Consulting.
Ask Your Employer for Help
If overspending is a problem and you want to start saving without too much hassle, consider asking your employer for help.
“Have your employer help out,” said Williams. “Most employers allow you to split your direct deposit, sending your paycheck to multiple accounts. Use this to your advantage, sending a portion of your paycheck directly to your savings account.”
Think Positive
Staying positive might not always be the easiest thing to do, especially if you’re struggling with your spending and saving habits. But that’s why you can start with something small and simple.
“Realize how powerful your thoughts are,” said Reid. “Using positive statements and comments when you think or talk about your money can be a really great start.” Reid suggested saying things like “I am saving” or “I am good with money” to help you shift your mindset.
Do a Savings Challenge
Gamifying your money habits can make it easier — not to mention more fun — to switch from spending money to saving it.
“Make it fun by participating in savings challenges,” said Maya Sudhakaran, head of growth and acquisition at Plynk. “For example, for two weeks you commit to cooking all your meals at home and refrain from making non-essential purchases. Whenever you feel an urge to order take-out or spend impulsively, deposit the amount you would have spent into a high-yield savings or investment account.”
Review Your Recurring Expenses
Recurring expenses, like monthly subscription services, can add up and lead to overspending. If you’re trying to become a saver, you might want to review these expenses and cut back on a few of them.
“There’s no need to cancel all non-essential subscriptions immediately, but look closely at what services you really use,” said Sudhakaran. “Ask yourself questions like: Am I watching TV shows and movies on all my streaming services, or just a few? Do I need daily updates from multiple news outlets? Am I going to the gym often, or could I do a similar workout at home?”
If you decide that some of these expenses just aren’t that necessary, then you can cancel some of them.
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This article originally appeared on GOBankingRates.com: 12 Simple Ways People Go From Spenders to Savers
