Make Saving a priority
Hold on I hear you say “If only it was that easy”
Saving is actually easier than you might think. The reason we often fail at this is we don’t understand how to work out how much we can actually save in our current circumstances correctly.
We therefore set unrealistic expectations on our savings ability and then give up when it doesn’t seem to work out.
To help you get this right you can use our FREE ‘Savings Calculator’ it only takes a few minutes to complete and will help you understand how much you can actually save based on your current situation.
Name your bank accounts correctly
Incorrect labeling of your bank accounts creates confusion and sends the wrong message to the subconscious brain.
Half of the success with money comes from our belief, the other half from our behavior. Changing our belief needs to occur first for successful long term change.
If you have a savings account currently labeled ‘savings’ and you regularly pull money from it to cover your fixed living costs, you are telling your brain you can’t save and reinforcing the belief that you can’t save.
(This works to the banks favor because it is easier for you to say yes to borrowing money if subconsciously you believe you can’t save).
To overcome this create two accounts and name them accordingly.
A) Holding Account: This is an account where you can put money aside to re access again at a later point when you need it for any expenses that arise.
B) Savings Account: This is where you put aside what you are intentional about saving. Money you want to leave alone to grow for a specific goal or just to have accessible as genuine savings – money you can spend at anytime without putting stress on the normal finances of day to day living.
Remove access and review regularly
It is important to make sure your ‘Savings Account’ cannot be accessed easily – for example funds cannot be used at a click of a button on the ATM or EFTPOS terminal. Access should only be possible through the action of transferring funds from your account to another account.
This will give you a moment to really think about it before you spend it.
Review the reason
– Why am I transferring this money, do I really need to buy what I want to use it for?
– Have I reached my goal and now ready to use it for the intended purpose or do I just think I need to use it?
– Can I make adjustments elsewhere in my finances that means I wouldn’t need to use my savings?
By deciding not to spend the money or finding an alternative option you are changing the subconscious message to the brain to one that says ” I can actually save”. This changed belief then helps establish changed behavior. Stopping to ask yourself these types of questions before you spend can help you create new habits.