Eureka! The Money Maven has found simple ways to help you save money for your long-term goals – like an around-the-world holiday, a house deposit, or a King Charles Cavalier puppy…
Step 1: Visualise your goal
The first thing you have to do is visualise your goal. Imagine yourself on a tropical holiday, stepping into your new house, or hugging your adorable puppy – then use that image to motivate you to achieve your goal.
Step 2: Set a realistic budget
Examine your finances and see what you can afford to save. You also need to allocate money for discretionary spending (e.g. your retail therapy), so you don’t feel too deprived. If your budget is too tight, you are more likely to break it and ‘binge shop’ until your piggy bank cries for mercy.
RESCU’s finance expert, Anthony Bell, has great pointers on setting and sticking to a budget and getting your finances back on track.
Step 3: Collect your coins
I mentioned a King Charles Cavalier puppy earlier as my money-savvy Dad saved to buy one (pictured) by simply collecting all of his $1 and $2 coins in a container for several months. You’d be surprised to see how quickly money can accumulate this way. It also lightens the load of your handbag.
I love this Digital Coin Counting Jar ($19.95 at Latest Buy) for an inexpensive way of keeping track of your savings. (pictured above).
You can also buy your own ATM ($39.95 at Latest Buy). Okay, it’s for kids, but it sounds like a lot of fun. It counts your money like a real ATM, and you can also set a saving plan target.
I also recommend the ultra-cute Emergency Break Glass Money Box ($29.95 at Latest Buy), but an empty glass jam jar would work just as well.
Step 4: Keep a money journal
I’ve said it before, but keeping a record of your expenses is the best way to rein them in.
Keeping a money journal involves writing down every single purchase you make and then tallying the total amount on a daily or weekly basis.
By using a money journal, you can also determine your money strengths and weaknesses, like pay week splurges.
Here’s a great article about money journals to get you started: https://consumereducation.suite101.com/article.cfm/keep_a_money_journal
Step 5: Start a high interest online savings account
If you haven’t already, you should look into high interest savings accounts, like ING Direct’s Savings Maximiser. There are no account fees, and you can schedule automatic money transfers into your savings account.
This article from Money Buddy details why high-interest accounts could maximise your savings.