If you’ve ever wanted to save successfully, then you’re reading the right article. That’s because you’re about to discover my easy 5-step method for saving 60K or a lump sum. And the good news is that this method works regardless of your salary, profession or saving experience.
Step 1: Set A Goal.
Many people who’re new to saving don’t even realise that they need to do this step before getting the right mindset. And that’s why a lot of people who try to save end up failing – they’re simply missing this crucial step. So, the first thing you need to do is set a goal. You’ll find that this part of the process goes much more smoothly if you apply these tips and tricks:
- Think of what it is you want to achieve. – What would it mean once you have achieved your goal?
- Decide why you are saving. – What would it mean if you don’t save?
Once you have worked out your goal, you can easily identify how much it will cost and how long it will take to get there. For example, you can achieve 60K in a year if you save £5,000 per month. However, this may be an unrealistic amount for most, and therefore, you can consider a longer-term for your savings which is more affordable such as saving £1,000 per month over five years. Once you have a clear set goal, you can move on to the next step.
Step 2: Get The Right Mindset
The next thing you need to do is create a money mindset. When I first started saving, I made a lot of mistakes. And now that I’ve helped others do it, I see many people tend to make the same mistakes. Money mindset is an easy mistake many people miss when saving. Your money mindset is crucial as it will help you remain focused, keeping your eye on the prize. One of the things that worked for me was continually telling myself I was broke while saving. It is crucial to adopt some mental changes as there will be many temptations on your savings journey. It would help if you had a positive mindset to remain on the path to achieving success regardless of where you start.
Step 3: Make Sacrifices
At this step, you’re likely to notice many people give in or find it difficult to let go of some of the things they love and enjoy. So, you need to create a budget to help you understand where your money is going first. I still remember the first time I was doing this step and trying to remove unnecessary expenses. I remember adopting quite a ruthless approach which meant limited discretionary spending. I accounted for every pound and penny and avoided frivolous spending. However, when it came to food and eating-out spending, I sure had trouble making sacrifices. You may not be able to give up all the things you enjoy, but the odd one or two won’t hurt. A simple trick to help you when making sacrifices is to continually remind yourself about your goal. Now that you know how to make sacrifices, there’s just one thing left for you to do: take action. So, get to it, and soon you too will be enjoying the benefits of your savings.
Step 4: Adopt A Minimalistic Lifestyle
By this point, you are likely to have started taking your savings seriously. You may already have started to see some results of step 1, 2 and 3. Well, now is the time to take it up a notch. Minimalism is all about taking things back to basics; it will all be worth it in the end. It might mean avoiding a so-called ‘best life’ lifestyle or making some sacrifices. It could be as simple as challenging yourself to a daily spend or opting for a simplistic lifestyle. For me, this was a game-changer, and it has worked wonders for many of my clients, and it can be just as rewarding for you too. You never know unless you try!
Step 5: Look But Don’t Touch
Yes, you read it right! If you want success with savings, you have to avoid the temptation of touching it. What do I mean by touching? I mean NEVER; well, at least until you have achieved your goal. You want to also consider accounts that will help you avoid this temptation, such as a passbook account or an account with withdrawal restrictions. You can even explore an account that aligns with your savings goal. For example, a Lifetime ISA (LISA) is suited to helping you save a deposit for your first home.
There are my simple 5-steps to saving 60K. If you can set a clear goal, create the right mindset, make sacrifices, adopt a minimalistic lifestyle and look but don’t touch. You could be well on your way to achieving 60K or more savings. Don’t worry if you are unable to do all these steps at once. It takes time to accomplish all five steps, so stick with it.
Remember: Saving a small amount soon builds up to a large amount!
If you want to learn more about saving 60K, check out my YouTube video here. Look out for our next blog for more ways to help you achieve your financial goals and SUBSCRIBE for updates and new content and receive a FREE copy of Your Financial Checklist Workbook.