Why Budgeting Never Works Out The Way You Plan
Hello Savers and Wanna-Be-Savers,
You know well we got all this savings pretty much figured out. But it did take a long time to learn and we try and test many things on a daily basis to see if this works for us and lands us more in savings at the end of the month. Some things make a big difference (like cutting out wine during the week and biscuits/treats and replacing it with long walks), some make no difference and some make a small difference (like getting haircuts every 14 weeks instead of 12 weeks).
One thing has always worked for us and been a major one is to decide how much you are going to put away that month (depending on a month) and just doing it as soon as you get your salary/wage. This maybe weekly income for some. But this is the thing, don’t wait until end of the week/month to put what cash is left away. Do it at the start or when you get your biggest sum. If you have a hard time doing that, just know that if you need money, it can always be taken out of the savings. You should have a long-term savings account and short-term one with a smaller amount in it and easily accessible. So far in 18 months we have never had to take anything out of our savings. All thanks to the magical promises we make to ourselves and being disciplined. This is hard sometimes, we know! There is always those times when you promise to treat yourself and those nice things money CAN buy….But trust us, short-term gratification does not feel as good or last as long as long, as awaited… Click To Tweet Tomorrow we are jetting off to Italy for a 10 day vacation and this saving game will feel so much better when we are absorbing the sun and sipping cocktails on the outdoor terrace, than being home with a nice bag or pair of shoes we probably would have worn twice (max). Not only we managed to save, we also managed to live our lives without too much compromise such as changing house or car and have enough money to save for a vacation. This will be our second one this year if you do not count a 3 day weekend break in Ireland (then its 3rd).
When you chose to treat yourself, you ultimately putting other things on hold. This might not be the case for everyone. But you do not have to be a math genius to figure out if you get paid X every month and want to have bills in fact and also go on vacation next month, buying lunch out every day is not a way to get there. Read our post about savings you can make by making packed lunches.
When you identify bigger goals, like buying a house, car, education for you or you loved ones, savings and discipline is what gets you there. The feeling you get once that goal is met is hard to replace and does not compare to a feeling you get after spending your cash on a new phone or gadget. Spend wise, save more, live happier life.
What are you saving for? What are your 2016 goals? Share in the comments below
We would like to hear from you.
As Always, Happy Saving!