If you are trying to save money for your long term goals, there are some mindset shifts that you might need to make, especially if you are trying to reach your goal quickly. There are also some tools that you should you that will help you get a better idea of your financial health.
Use a Budget
A budget can really help you understand where your money is going and where you can potentially save more money so you can reach your goals faster.
If your budget is detailed enough, you will begin to understand the seasonality of your finances so you can better prepare for unexpected expenses while you save money for your long term goals.
A detailed budget can also help you track your money down to the last penny so you can make sure that you are making every last bit of your money work for and with you.
Undated Easy Budget Planner
Be Realistic with Your Finances
Understand where you can realistically save money and where you can’t. You should really be honest with yourself in regards to how much you spend on unnecessary things and what other budget friendly products and services you could buy instead of the name brand ones you have been buying.
Understand Your Wants vs Your Needs
Although you may want Starbucks everyday, you don’t need Starbucks everyday. Especially considering that you could take that same money and reinvest it in a nice coffee maker so you can make yourself fancy drinks.
There are plenty of copycat recipes online so you can make the same drinks that you would have otherwise bought at Starbucks.
The same concept can be applied to anything else that you are wasting your money on. It is okay to reward yourself for your hard work and to want to treat yourself occasionally, but there are many money friendly ways to do that without wasting your budget.
Stop Trying to Keep Up with the Joneses
You really don’t need to buy expensive items just because you see others doing it. Don’t get jealous just because you see someone with something fancy.
Really ask yourself if that is something you even want or need, because many times you will realize that you don’t.
If you are trying to save money for your long term goals, keep that goal in mind while you decide if you want to waste money on keeping up with others. You will keep getting further and further from your goal if you are just going to keep wasting money on things that you don’t need.
Delay Satisfaction within Reason
There are plenty of times that you could splurge and buy something that you want, but if you don’t really want it all that much, you might be better off not getting it and instead getting something you want so much more.
Hold Yourself Accountable
You will really need to hold yourself accountable so that you don’t fall off your budget. Sure there will be plenty of times that you will want to buy things that you want, but don’t need.
You aren’t a Savior
Don’t let your budget get sidetracked by family or friends that need money. Understand that you are on a financial journey of your own and that you can’t save everyone else, especially if they don’t have good financial practices of their own and they are constantly wanting you to bail them out and they never pay you back.
Sometimes you just need to let people learn on their own. Either they will get on a financial journey of their own, or they will keep having poor finances, but either way, that isn’t your problem.
- Still Using a Debit Card? Here’s Why You Shouldn’t Be
- How to Save Money While Car Shopping: 10+ Tips
- 7 Baby Items You Should Buy from Thrift Stores
- How to Save Money while Buying a House: 10+ Tips
- 7+ Habits of People that Don’t Overspend & Still Get Everything They Really Want
Understand How Your Relationships Affect Your Finances
Just because you are no longer giving money directly to people, doesn’t mean that you need to foot the bill for them every time you go out either.
There are many times, especially for men or for people that make more money in the group, you feel compelled or even bullied into paying for the group. Don’t fall for this trap.
People need to understand that if you can’t afford something that is a want and not a need, you don’t need to get it. This goes for you on your financial journey and for anyone expecting you to pay for them.
It is fine to give gifts and treat people now and then; however, don’t be pressured to blow your budget while trying to pay for other people that should be paying for themselves.
Tackle Your Debt
It is really important for you to get your debt under control. Some of the worst debt you can have is credit card debt because the interest rates on credit cards are so high.
If you can get approved for a bank loan with a lower interest rate, you will have a much easier time paying off the credit card debt. However, before you jump into the bank loan, understand the interest rate for the loan and how the interest is compounded to make sure that it is actually a better deal. Depending on the bank you are working with, it may or maynot be.
Another option is to use a different credit card to transfer the debt to with a lower transfer balance interest rate. Depending on how much credit card debt you have, you might need to do both to cover your credit card balance.
Consider a High Interest Savings Account
Once you have tackled everything else, you can actually start to save money for your long term goals.
There is no point in trying to save money while you are paying high amounts of interest every month. So this will be one of the last steps you will take in order to save for your long term goals.
- An Honest and Complete Boon Nursh Baby Bottle System Review
- 20+ Baby Items You Should Never Buy Used
- How to Save Money on Baby Items: 9+ Methods
- How to Pick the Best Baby Bottle for Your Baby: A Complete Guide for New Parents
- Moby Classic Wrap Baby Carrier Review
Research CDs
Depending on the savings rates and term length of the CD, this might be a good option if you won’t need the money before the CD maturation date.
If the savings rates are the exact same between the high interest savings account and the CD, I would recommend you go with the high interest savings account. This is simply because if you need the money sooner than later for an emergency, there will be a penalty to take the money out of the CD, but there isn’t a penalty with the high interest savings account.
Other Post to Help You Save Money For Your Long Term Goals
How to Save Money while Buying a House: 10+ Tips
How to Save Money On Day to Day Expenses: A Complete and Ultimate Guide
How to Save Money on Baby Items: 9+ Methods
How to Save Money on a Low Income: 22 Tips
