Why is Saving Money So Important This Year and How to Keep a Bit More

Nowadays everyone is asking questions about saving more money, especially young people, since they know how crooked the economy can be, especially now that we are expecting a recession. Everything is unsure and makes sense trying to figure out a way of feeling a bit more financially stable and eventually achieve a sense of financial freedom (yes, it’s possible). It has to do with how you think, your relationship with money and how you act around it. It’s easy to say you know everything around the money, but it means nothing if you do not implement what you know. That’s why we wanted to write why it’s essential, mentally and financially to save money and what to pay attention to before you even start. There is a difference between efficiently saving money and accumulating it on the side.

What is your money belief?

Do you think the more money you have, the more “evil” you’ll become? Or you think you should save every penny even if you need to buy something, because it can easily slip away, so better keep it. Where does that belief come from? Is it something your parents taught you? Maybe they never mentioned such a thing, but you’ve seen them go early to work and come home late, exhausted so they can support the whole family. Maybe the image got stuck in your head, and you subconsciously don’t want to get out of the “comfort” zone because you don’t know what will happen once you do that. Will it all go to waste, or you’ll be able to decide what’s important and what’s not once you start spending besides the necessities. If you need a new computer (especially for work), rethink how much your comfort zone limits you if you haven’t bought it yet. If you have enough money for it – do it. You will not buy a new computer every month, and it’s something that will improve the quality of your work, and you’ll probably have more free time because you will be able to work faster. This is only an example, but what we want to say is to rethink and put on paper what you think about money since you were little and if you still believe you need to abide by those rules, even if you feel differently because you were conditioned to do so. Examining your emotions when it comes to money will only benefit your money management.

Lower your expenses

We know this sounds like a pretty obvious choice, and resembles a “scarcity mindset”, but it’s far from that. If you know you need to save money, try not eating out all the time, but instead making a food plan for a week, as an example. Shop when groceries offer discounts (groceries like fruits and veggies are usually in season at that time, so double plus). This way, you can also challenge yourself to cook with ingredients you usually wouldn’t, spice up your food plan and learn something new. We know cooking isn’t for everyone, but start small if you don’t aspire to become a chef. This leads us to a tip of dining in, because once you get to the level where you can’t wait to come home to cook your favourite meal, restaurants won’t be so attractive anymore. Special occasions are of course, okay, but watching Netflix and ordering because it’s much easier can take away lots of money when you can actually take 10 minutes from your time and make something that will make everything better. If you think you will miss out on fun while you’re trying to cut some expenses, there are so many movies you can watch for free, exercise with your friend using free videos on youtube, spend more time in nature, borrow books from the library. There are so many options out there!

Lifestyle inflation

This is a term used when you start to earn more, thus spending more, and then you suddenly don’t realise where your money is going. This diminishes the amount you are saving because you will start paying on “more bougie” things, luxury vacations, redecorating your home, eating out more. Again, you can do all these things within reason, but if you didn’t stop yourself, it would be best to try journaling about your relationship with money, aka starting from the first advice. You might discover you are trying to fill some void. The best way to avoid this would be setting some extra paycheck entirely out of your sight. You can consider this as putting it on the side for paying off some debts or financial goals you want to achieve. What matters is that you are aware of what you are doing and where your money is going, so you can start making these small, but significant decisions regarding your lifestyle and money.