How to motivate yourself to save
We all know the phrase ‘don’t put off until tomorrow, what you can do today’. What if you decided to save, but selected the date to start in a few months’ time, rather than now? Logic suggests that the sooner you start the better it will be, as you build up funds more quickly and benefit from the secret sauce of compound interest. However, to some it means that the ‘pain’ of saving money hits sooner, which can either decrease the amount you are willing to save regularly, or even put you off doing it all together. Behavioural research has shown that if we decide set a start date a short time in the future, and can tie it in with an event, such as a salary review, birthday, or the end of term, then we are more likely to select a more realistic amount to save. So, when the time comes for it to start, we feel far less impact emotionally and logically to our disposable budget.
Another good tip is to put bonuses or pay rises towards savings or to build your retirement savings pot. Like the old Chinese proverb says, ‘the best time to plant a tree is now, and twenty years ago’. So, there really is no time like the present to get on and ‘mend your financial roof while the sun shines.’ Plus, most people find that shortly after saving you will soon readjust your outgoings and adapt quickly and find ways to ensure you don’t appear in your overdraft at the end of every month.