DOES SAVING MONEY SOUND LIKE A PUNISHMENT? HERE ARE 5 WAYS TO STAY MOTIVATED WHILE SAVING. Budgeting used to be the most boring thing besides brushing your teeth – but not anymore.
Let’s look at it this way: we all want to be fit, so we go to the gym, do cardio, and lift weights. It’s hard, and it may be boring, but we find a way to get through this. We pick the most fun option. Or the quickest one. We notice that we feel good after the workout is over; exercise releases happiness hormones such as endorphins, serotonin, and dopamine. Also, I don’t know about you but I sure feel darn proud of myself. Once we start noticing the results – whoa! The motivation just goes through the ceiling. Have you had that experience?
So what’s the correlation between exercising and saving money, you might ask? Very simple. Your money is an extension of you. How you relate to yourself, your body, your friends and family, your work – it all reflects in your bank account. My suggestion is to start treating your finances the same way as keeping fit. It may be tough and boring at first, oftentimes even frustrating, but rewarding in the long run. Like with exercising, once you notice some changes and positive results, your motivation will increase.
Let’s take your money to the gym. I’ll tell you how.
Set goals
What do you want to achieve with exercise? Lose wight, gain muscle, or simply be fitter, avoid weight gain and health problems? Similarly, with saving and budgeting, you may want to have more money at the end of the month for fun and entertainment; you may want to buy a house; invest or have a happy retirement. Whatever that is, figure out your short term and long term goals as the very first step.
Make a plan
Make a plan. How many times a week would it require you to exercise in order to reach your fitness goal? What kind of exercises should you do? Now take this back to your finances. If your goal is to save 10.000 euros, or dollars, or pounds in 2021, how much is it per month (ideally in percentages)? What do you have to do to make it happen? Where can you cut your expenses, and how could you make more money? I recommend to use SMART goal setting technique: your goals should be Specific, Measurable, Achievable, Realistic and Time bound.
Take small steps
No need to go cold turkey and introduce multiple drastic changes. You’ll literally freak yourself out and give up in a couple of weeks. The trick is to start with smaller weights, and easier pace. You’re not expecting to lift 25kg a week after you set your foot in the gym? Well, don’t expect to be able to save 50% of your income in the first month. You can start with as low as 1% and then slowly increase it to the maximum you’re able to put aside, ideally around 20%. Maybe you’ll forget to fill in the spreadsheet and your first month of budgeting properly is a total flop. Who cares. Just carry on!
Treat yourself
After a great workout (for the record, I do Insanity Plyometric cardio for most of the time, it burns around 700 calories per session), I may want to treat myself to some nice food. If I stick to my workout schedule for the entire month, I may get a new gym outfit. Whatever rocks your boat! Once you’ve hit your first monthly savings goal – or stuck to your budget to a t – or simply spent less than usual for the first time, whatever your goal is – just treat yourself. Now, I’m not saying go and blow all the money you saved in the wind. Negotiate with your wants and needs and find something that satisfies your craving for a reward. We’re so used to thinking rewarding ourselves should involve spending that when I ask my clients “What could you do for free or very cheap”, they often freeze. On a really busy period, just a night in with pampering, a glass of wine, a great magazine and a movie is pure heaven. A picnic in a park instead of a dinner at a restaurant. Or a cup of coffee in a really, and I mean really fancy hotel.
Review and reassess
After 21 days, and then after 2 months and 3 months, take a minute to review your progress. The idea is to be able to see some improvement already after the first few weeks. Take a look at all your good choices and congratulate yourself. You skipped that trip to the shopping centre? Well done. Packed lunch instead of eating out? Yay! Little things do matter, and just by making one good choice often saves you hundreds in the long run. Is there anything you’re doing but it’s not working? Reassess. Is there another way to get to your goal?
As you see, saving and budgeting can be made fun if you develop the right mindset. Of course, a little bit of willpower is required, and there will many bumps on the road. The idea is to have fun and enjoy life while making sure you’re financially stable and that your future is secure. Negotiate with yourself every day. Turn your needs into wants. Reward as necessary. Sometimes you don’t even need a reason to reward yourself, especially if you’re a lady – because us, women, need beautiful things and luxury in our lives a little bit more than men. Saving is cool. Just like going to the gym and taking care of your body, taking care of your finances is a must if you want to be healthy, happy, and successful.
Money gym is on. Are you in?