Are you having a tough time trying to save money this year?
It seems like such a great goal to have at the top of the year and it actually is. But it is also a tough one especially when you start to look at the details. Where are you going to get the money? Is it better to save more money and make minimum payments on debt accounts? Do you have to get a second job just to hit your goal?
At this point, you might have more questions than answers. And when all of these unanswered questions pile up, you might get discouraged and simply give up. It is actually a lot easier to give up and look for a new goal rather than sticking to your plans. But is this the right way to start the year? If you do this, you might just take the same approach with any goal you have once you start to have a difficult time.
Yes, it can be tough but it does not mean impossible. There will always be obstacles in life and this includes whatever goals you have. If you want to save money this year, you will go through tough times. You might feel like giving up. You need courage as well as discipline to help you persevere as you try and reach your goals.
Times will be tough so here are a few things to help you stay on track.
Set a goal
If you want to save money this year, you need to start with a very specific goal. It can be the reason you are saving money or an actual amount you aim to reach. This way, you always have that to aim for. This can help guide your decisions and even encourage you to continue moving forward when you feel the urge to just stop.
If your goal is to set aside a specific amount so you can put a down payment on that house you want, then go for it. Understand how much that is and write that amount down. This then becomes your goal for the year. You have a definite amount you are working on with which you can benchmark your progress as well.
There is a good chance that the amount you want to save is quite high. If you look at it as just one amount, it might seem like a daunting task. But what you can do is break that into smaller amounts you can work on throughout the year. This way, they become doable, and each month that you reach it is a great mental win for you as well.
Work through the problem
There is a good chance that you can’t save money this year because of setbacks in life. It can be personal problems, challenges at work, or even mental health issues that are keeping you from reaching your savings goal. One thing to accept is the fact that challenges will always be a part of your life. There is no way around it. The American Psychological Association shares that stress is present in almost 8 out of 10 American adults.
If you are going through any problems in life, the goal is to make adjustments so you can move forward. You do not have to stop but rather – make smaller steps. The important thing is that you are still working towards your goal. One thing you can do is save a smaller amount every month while working through your problem.
When the situation becomes better, you can simply pick up where you left off. And because you did not really stop saving money, you can try and make up the amount over a few months. You do not have to start from scratch because you put everything on hold. Also, it helps to try and keep to your financial goals while going through a problem – it gives you the chance to look forward to something and keeps your mind off your problems as well.
Setbacks can be set-ups
If you are having a difficult time trying to save money this year because of constant challenges, a different mindset might help. One approach is to know that all the problems you are going through now will soon come to pass. The time will come when you will look back to this day and realize how strong you were in getting past your problems.
Remember also that setbacks can also be a great set-up for better things to come. It might be a point in your life where you are being redirected toward something better. There is also a chance that this is where you pick up some valuable lessons in life. Lessons that can help you move through and reach your goals faster in the future.
Consistency is a powerful tool
There are a number of reasons why you might have a difficult time saving money this year. It can be the lack of a household budget, the uncertainty of regular paychecks, or even personal problems creeping up every now and then. Life will always throw something your way. They can throw you off course and push you away from your goals.
To help you save money this year in the middle of problems that comes your way, consistency is a huge help. If you stay consistent, you develop the habit of saving money. Once you do that, setting money aside every month or every payday will feel like second nature to you. You will automatically be saving money without thinking much about it.
This is one of the reasons why you need to be consistent in setting money aside even with a small amount. The goal is to develop the habit of saving money early on. As you do that, you can slowly increase the amount as you go along. Over time, you will notice your savings account slowly grow until you reach your goal.
Diversify your income
There is no denying the fact that it becomes a lot easier to save money when you have extra funds. One way to do that is to diversify your income. This was one of the biggest lessons people learned during the pandemic. Once their primary source of income was impacted by the health crisis, their finances became tough.
Getting an alternative source of income may not immediately replace what you earn from your main job. But it can help soften the blow when it comes to lost income. You do not have to worry too much because you have an alternative source of income. You can use that money and channel it to cover your basic needs.
This way, you get to put more focus on replacing lost income. It can be looking for a new job, starting a business venture, or even scaling up on your side hustle. Looking for alternative sources of money can also give you a better chance in managing your stress level. You do not have to worry too much about your finances so you keep your anxiety levels down also.
If you want to save money this year or any other year, you need to set a goal and be consistent with it. The more you keep at it, the more you develop the habit of saving and it will soon become natural to you.