Putting up a savings account is easier said than done. Most people find it difficult to save money because it will mean sacrificing wants, decreasing current consumption or deliberately changing financial habits. While some individuals incorrectly view savings as what is remaining after their needs and wants have been satisfied. All these are just some of the reasons why people have hard time finding financial means and meet financial goals such as investing for a home, purchasing a car or just simply saving up for a rainy day. But setting up a financial plan does not have to be overwhelmingly challenging, it only takes a few baby steps to attain realistic goals and get the most from your hard earned money.

Set saving goals and follow a time-frame

You need to identify your short term and long term financial goals to have a clear picture of how much you are going to save and how long it will take. For short term goals, let’s say you want to buy an apple gadget, determine how much you are going to keep from your salary every pay day and your time frame of purchasing the item. For long term goals such as putting up your own business or retirement, you need to figure out the amount of money you need 15 to 30 years after you stop working. You may also look into how investments can help you achieve your goals.

Strive to clear all your debts

Money freed from debt can easily be re-purposed to savings. Have some calculations of how much you spend for your debts every month and your target time-frame of getting fully paid. It helps to pay your debts on time since it lessens the interest amount and it can be saved instead.

Determine how much is to be saved in a day, week or month

Figure out how much you’ll need to save on a daily, weekly or monthly basis depending on your goal and time-frame. It is important to set up a realistic goal of setting aside a fixed and an approachable amount to be saved as you also adjust it to your usual expenses.

Keep track of your expenses

Don’t spend more than what you earn is basically the idea here. Keeping track of your expenses would literally mean listing down your expenditures for a week or month. It is best to be as detailed as possible without skipping small purchases. This task can also be helpful since reviewing your list may give you a chance to remove items which don’t seem to be very important. In return, you can even save some amount.

Use your creativity and initiative

Make the effort to use your resourcefulness in saving up money without being too hard on yourself. For example, “Lunch Savings” is a mind-blowing effort to cut down your expenses! Instead of spending for your lunch every day, you can just simply pack your own lunch in a brown bag. You just need to make some budgeting on your groceries and estimate the length of time you can consume the goods so you can sustain no buying of lunch.