Saving opens a lot of doors.
Whether you live to work or work to live, for most of us there will be special moments we want to have in our lives that need to be paid for. Skydiving, travel, climbing Everest or taking a sabbatical from work–all of these once-in-a-lifetime experiences somehow need to be paid for, preferably without borrowing money, especially if you have a poor credit score and could only borrow via loans for people with bad credit. So how do you go about saving for them?
Find out what the experience will actually cost
We all make assumptions when it comes to costs. And, when it’s something we dearly want to experience, we can tend to be a little overly optimistic about affordability. So, right from the start, make sure you have a realistic idea of what the costs will be and exactly how much you’ll need to save to cover them. That way you won’t end up short when the time comes.
Revisit your budget
If you don’t currently budget with your cash, now is the time to do it. If you are already budgeting then now is a great time to start looking at where you could rework parts of the budget to find money to save. What luxuries could you cut back on? Where might you be able to find a cheaper option? Better budgeting is the foundation for great saving.
Open a separate account
Call it “the skydiving account” or “the Everest account” and set up regular transfers from your other accounts as soon as you get paid. Separating your money in this way will give you a better chance of ensuring that you don’t spend what you’ve saved on other things. It will also help you to feel like you’re serious about achieving this savings goal.
Every little helps
If you don’t have a lot of spare cash it doesn’t matter – every penny helps when it comes to helping you to reach that savings goal. If you only have £10 available to put into your savings account this month then do it. The temptation with saving is often not to bother if you don’t have enough to make a big impact. However, all the small figures add up and could make a big difference over the course of a year.
Keep yourself motivated
If the saving process starts to feel tough there are plenty of ways to keep yourself motivated. For example, you could put up posters or photos of an experience or destination that you’re hoping your savings will take you to. If it’s a shared experience then set your savings goals with someone else so that you can motivate each other. Keep track of what you’re saving so that you can see how far you’ve come and don’t give in when it starts to feel difficult – keep reminding yourself of why you decided to save for this in the first place.
Generate more income
Whether you look at making investments, or earning more from something like driving a taxi or working weekends in a coffee shop, there are a million ways to generate more income these days. If you’re keen for that once-in-a-lifetime experience sooner rather than later then earning more now will help to get you there.