Saving money over the long term is not an easy task. It requires self-discipline, the ability to say “no” often and the fortitude to stay strong in a world full of temptation. Focusing on the end goal can be challenging, especially if it’s years down the road and instant gratification is (sometimes literally) at your fingertips.
Whether your goal is to save up for a down payment on a home, pay off your student loan debt or reach financial independence, it’s important to have a toolbox of strategies to maintain your money-saving momentum. Consider these tips when your goal seems unreachable or just not worth the pain.
[See: 8 Big Budgeting Blunders — and How to Fix Them.]
Remember your “why.” Before anything else, you must always remember why you want to save money in the first place. It’s easy to let the importance of this goal slip in moments of temptation, but ultimately it’s the driving force behind your actions. In addition to calling the goal to mind when you’re considering an unnecessary purchase, make it a rule to wait at least 24 hours before deciding on a purchase that’s not included in your budget. This will give you the space you need to evaluate the utility of the purchase and whether it’s worth setting back your timeline of achieving your financial goal. In most cases, it’s not, and the distance you create reduces the urgency for the item or experience.
Avoid lifestyle inflation. Whether you receive a bonus, pay raise or boost in income from freelance work, you should apply these earnings directly to your savings goal. This can be challenging since you’ll likely feel like splurging or elevating your lifestyle in some way. However, lifestyle inflation doesn’t typically offer the results you expect and can result in unhealthy spending.
[See: How to Live on $13,000 a Year.]
Define “needs” and “wants.” You may be tired of hearing that your morning latte is a “want” while your rent is a “need,” but these classifications are key to staying on track with your savings goals. This is especially true when something that’s a “want” feels like a “need,” like when you’re invited to a pricey bachelorette party weekend for a close friend. When moments like these arise, identifying the weekend as a “want” and not a “need” based on your personal definition can make it easier to decline, though you’ll likely want to think of a less-costly way to honor your friend. For example, you can arrange for the hotel to have champagne and flowers ready for the bride-to-be when she arrives for her weekend.
Get ahead of spending triggers. When it comes to impulse buys and unnecessary purchases, you’re more vulnerable during certain moments. For example, when you’re in a celebratory mood, you may be more likely to order another round of drinks to keep the good times going. You may also spend more money when you’re feeling down as a means to cheer yourself up. These triggers can reduce your money-saving momentum if you don’t plan alternative ways to address them. If you typically make a Starbucks run after a long morning of hitting the snooze button, you can recognize this behavior and prep your coffeemaker the night before instead.
[See: Your Month-to-Month Guide to Savings.]
Request support from your network. Self-discipline is a key component to achieving any goal that requires sacrifice. This doesn’t mean you have to go it alone, though. When you feel yourself wavering, call on your friends and family to help you get through the tough moments. Sharing your goals with your network can offer you the support you need to keep going. It can also help those closest to you check their behavior when they spend time with you. For example, friends may suggest meeting up for a walk around the park instead of happy hour, or a family member may remind you of your goals when you’re considering a new clothing purchase.
Challenge yourself. Money challenges may seem like the typical strategy when it comes to saving these days, but for some the approach is incredibly effective. It provides structure and gratification, and requires “players” to track, or at least evaluate, their progress. A no-spend challenge, for example, can result in hundreds of dollars in savings and, in some cases, changed spending habits. By restricting your purchases, you can clearly see how much money you spend (or waste) on nonessential items and experiences. Another popular money challenge is the “52-Week Challenge,” which requires participants to save $1 the first week, $2 the second week and so on, up until they reach week No. 52 of the year. All told, successful participants can end up $1,400 richer at the end of the challenge.
Celebrate milestones. Since big savings goals usually take months or years to achieve, it’s important to celebrate milestones to keep up your momentum. If you goal is to pay off credit card debt, and you have multiple credit cards, you can celebrate each time you pay off an entire balance. For less-structured savings pursuits, create your own milestones to celebrate. You can treat yourself to your favorite ice cream shop when your student loans get under $10,000 or have a takeout date with your spouse when your emergency savings account reaches 50 percent of its goal. These events should be modest and in-budget, but special enough to celebrate your accomplishment.
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How to Maintain Your Money-Saving Momentum originally appeared on usnews.com
