How to Have Fun While Saving

Who says savings is not fun? It may look that way especially if you focus only on the process rather than the goal. Like in all good things, some sacrifices are in order to achieve the desired result but you have the power to make it a better experience and reap the benefits afterwards.

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Saving requires a personal decision for it to work. Getting to the point of deciding to start saving is the hardest part, the second hardest being the consistency of putting additional amounts. Once progress is seen in terms of increased savings, a certain level of peace and satisfaction is achieved that makes the next steps easier, exciting, and even fun.

Set Aside a Realistic Consistent Amount

Many are familiar with the very first lesson taught in Financial Literacy: Income – Savings = Expenses. The logic behind this formula is that usually no savings will be left if expenses are prioritized. There will always be the tendency to spend on wants, beyond needs, just because funds are available, but until when? If savings is prioritized, people learn to adjust expenses according to what can actually be spent.

Consistency requires people who are trying to save to be realistic in relation to income and necessary expenses. Decide on the amount and be consistent in setting such amount aside. Be kind to yourself by giving yourself small rewards when savings goals for the month is achieved. There is absolutely no need to feel deprived of material things or things that bring you comfort. Knowing and accepting your financial limit is the key so you have to be more selective in determining what you can’t do without and pass on the others, at least for now.

Understand How Savings Work

Saving for the sake of saving makes the act harder and therefore not fun. Without understanding why you are saving will put highlight on the sacrifices over the benefits. There are a lot of tools that can be used to provide the needed direction to save.

SavingsCalculator.org is one tool that is useful and friendly even to those who are only starting to save. You can quickly calculate the amount you need to regularly set aside and for how long, to achieve the target savings amount. It also takes into consideration interest rate, state and federal tax rate as well as inflation rate so you get the see the whole picture. Understanding how your savings can work for you is a motivation factor that can make savings fun.

Make it a Family Effort

It can be pretty tough doing the saving alone in a household. Make it a family effort or even a healthy competition if you will so that no one person carries the burden of saving while the others continue splurging. Each household member can contribute according to capacity.

Saving is not all about giving money to the family savings fund. It can be in the form of avoiding wastage in food, gas, water, and time. When everyone is actively participating towards a common goal, the process becomes bearable and enjoyable and the goal becomes achievable.

My Say

Uncertainties in life are there and one way people can achieve some sense of security is to have savings tucked away safely when the unexpected comes. While there is no assurance that it can answer for everything, it gives you a lifeline while you are looking for other ways. Savings also make it possible for people to enjoy a better quality of life that is far superior than living paycheck to paycheck. Have fun saving and reap the rewards of doing it while you still can.