It is one of those habits that one must inculcate early in life. Just like eating healthy, exercising regularly, reading daily and cutting down on screen time have several benefits, saving money has a plethora of benefits from managing unforeseen financial emergencies to planning a comfortable future and more.
When looking to adopt a healthy habit like saving money, a good way is to add fun elements to the whole deal. Make it a game complete with levels, rewards and penalties. It also helps to involve more players to add to the excitement. Listed below are some interesting ways in which you can make saving money more enjoyable:
1. Create a savings challenge: Challenge yourself to save money every day. The first day of this challenge might be an eye-opener to how much money you can avoid spending. Every time you reach out for your wallet, whether physical or digital, take a moment to think about whether the expense is required or can be avoided. To make it interesting, take note of the day’s savings, however small, and move the amount to a separate account. You can also use a piggy bank for this purpose, if you are more comfortable with physical money. Seeing your savings grow will motivate you to keep going.
2. Take the ‘cash’ way : There is no concrete proof, but several studies have indicated that individuals using virtual money, i.e., e-wallets, UPIs, credit and debit cards, end up spending more than those who make use of physical cash. You might like to experiment to arrive at your own conclusion. But think of this: the thought of having to go to an ATM frequently as you run out of cash may keep you from spending unnecessarily.
3. Compete with friends: A game is always more fun when there are more players involved. Find fellow players, ideally from the same income and lifestyle bracket, to add the spark of competition and avoid slacking in your game. You can also benefit by finding innovative ways to spend time together without spending money. Like movie dates at each other’s place, picnics, treks, pot-lunch plans, etc.
4. Have ‘zero spend’ days: Add a twist to your savings challenge by fixing ‘zero spend’ days. It can be interesting to find your way through days where you are forbidden to dig into your wallet. For example, you might hitch a ride with a friend to the office and back to save on travel money. Carry lunch and snacks from home and avoid any possibility of having to pay, either through digital or physical modes.
5. Set goals and reward yourself: A game without levels, rewards and penalties can hardly be termed interesting. So, to make your savings game engaging, make sure to set goals. These can be periodic goals, like a certain amount that you would like to save in a week or month, or need-based goals, like saving up for a new device, vacation, loan pre-payment, etc. Make sure to encourage yourself with a little reward for achieving a goal. For example, you might like to treat yourself with a meal at your favourite restaurant, which you have been avoiding to reduce expenses. Make sure you have penalties in the game too to keep you on track. However, don’t be too harsh with the penalties. We don’t want to be demotivated on this journey.
6. Commit to Periodic Investments: Savings, when invested in right instruments, grow. Accentuate your savings with the power of investments. Opt for periodic investments like monthly premiums towards life insurance plans, SIPs in mutual funds, a recurring fixed deposit, etc. This will not only ensure that your savings stay secure but also help you compound these savings over time.
Inculcating good habits early helps them become a way of life over time for an individual. ‘Saving money’ is one such healthy habit that one should develop from the time one starts understanding and handling money, i.e., ideally from the pocket-money age. However, it is never too late in life to develop a good habit.
There are just 2 keys to success: First, START. Second, KEEP GOING!!
