7 Ways to Have a Money-Saving Mindset
You might have come across articles on how to be successful or financially independent all pointing to having a saving mindset.
Well in this article we are going to explain what it truly means to have a good financial mindset and the habits we can stick together to give meaning to it.
- Start
You don’t always have to have everything figured out when you first begin it. The most important step is that you start.
You’re going to figure a lot about money and how it works after you’ve begun saving.
You might have realised that your finances have been unaccounted-for for so long that it kind of seems that you are losing more than gaining.
The question is, what then does it mean to start? It means gathering the essentials you need to start saving money.
Whether it is to have a savings account or financial records, collecting bank statements to account for your finances, or sitting down with a pen and paper to write a budget.
It is anything that kick starts your saving journey.
- Goals
Goals alone cannot take you anywhere. You must not only have goals but plans to take action to achieve the goals.
But it is essential to have goals because it is a vision of where you want to be over a certain period.
In terms of savings, a goal can be a certain amount of money to be used for setting purposes. Take note of not just having saved money but appropriating the money to a certain cause.
For instance, it is a good savings goal to save £10,000 to offset student debt or £20,000 to start a business.
Just saving money for the sake of saving money is a goal.
- Create a system
A system is a more functional part of having financial goals. The system shapes the financial mindset.
An accounting system or our financial system comprises all the little steps that contribute to the general goal.
They’re the sort of actions that need to be taken for the goal to be achieved.
It involves keeping track of your expenses, budgeting before purchasing, cutting bad buying habits, etc.
Creating manual or technical systems like records keeping on a notebook or spreadsheet, personal finance app or software, is also part of having a financial savings mindset.
If you’re taking on this journey because you have a business you want to keep afloat then do not mind channelling in extra services.
It pays off to find extra financial services like financial advisors or bookkeeping services, it will be worth it.
A saving mindset is not complete without creating an accountability system.
What are how you’re going to hold yourself accountable? For instance, having an accountability partner.
- Give it time
Having a financial mindset involves creating a system of good financial habits and behaviours over time.
Do not be hard on yourself when you fall back on your financial goal. It happens even to the best of financial experts.
What matters is that you can come back to your feet and continue with your routine or shape your savings routine.
James Clear in his book atomic habits explains that it takes small incremental improvements to build a habit.
In this case, you have to give yourself time and pick up good financial habits in smaller chunks.
- Change your social surrounding
Our friends and social circle have a far reach on our behaviour and habits.
To have a good saving finance mindset you have to change your circle of friends.
If your friends are notorious for hosting extremely expensive parties you’re more likely not to save money in the long run because you have to live up to the standards your social surrounding has set.
- Minimise your lifestyle expenses
This is probably where most money goes. An expensive lifestyle reflects negatively on financial savings.
You don’t have to upgrade your phone every year, you don’t have to rent a three-bedroom apartment when you’re living alone, you can live without that Black Friday deal.
You don’t have to be frugal with your earnings because of the role you deserve it just minimising your lifestyle expenses will increase mentally lead to more money being saved.
- Break bad habits
If you would like me to go through with a financial savings plan you must take all your time to figure out how you’re going to break that habit.
Some of the top bad financial habits include; living beyond your means, not paying your bills, not setting aside emergency funds, making minimum credit card payments among others.