What is an Example of “Giving Yourself a Raise” With Regard to Savings?
When it comes to having more money, the first thought in our minds is often “I could use a raise right now!” However, it’s never that simple, whether you’re an employee of a business or self-employed, which means taking matters into your own hands and giving yourself a raise!
Shifting your perspective can be a really handy tool when looking for ways to save, or giving yourself a raise. When thinking of “saving” we usually look for additional ways we can have more money in the bank or in a savings account. It can lead to us thinking we need to find new ways to save money. Instead, think of saving as “not spending.” What can you not spend money on that you don’t need? You don’t have to make more money to not spend money – the hardest part is being disciplined!
Start by reviewing your recent spending. This could mean printing your bank statements our for the past few months and separating your expenses into two categories – needs and wants. “Needs” are things like mortgage payments or rent, food, gas, car payments, and utility bills. Examples of “wants” include dining out, paying for multiple streaming services, and other items we don’t really need, but often want. You’d be surprised how much you can really save by simply reviewing your expenses and cutting down on the things that you may want but don’t really need.
Once you’ve determined how many of the “wants” on your list you can afford to go without, make it easy on yourself – automate the saving! Pick a date each month and have that amount automatically moved from a checking account into your savings account. If you’re saving for something specific, open a new savings account and give it a name, such as “New House” or “Vacation.” Doing this will serve as a reminder of what you’re saving for when you look at your bank account. It can also help you think twice about moving money out of the new savings account in the future for something you may not really need.
Giving yourself a raise can seem like a daunting task at first – but it doesn’t have to be! Like to many journeys in our lives the hardest part is simply starting! Know that things may seem different after putting some of these changes in place, but if saving is a goal of yours and a raise from your employer isn’t an option, you can take matters int your own hands!