How to get excited about savings?
Everyone wants to have some savings, but most are unable to achieve their goals, primarily because the journey can be lengthy and monotonous because it requires discipline. You can, however, change this by making the financial savings journey exciting and keeping you on your toes.
Here are some of the ways you can achieve that.
Save for your goals
The most important thing to add excitement to your saving is mapping it with your goals. This adds purpose to your savings and thus keeps you motivated. For instance, if you plan to have a foreign vacation next year and are saving for that, tag that portion of savings with that goal. This will add that bit of incentive to your savings when you have to make your periodic investments and deter you from dipping in to that portion of the savings for another reason.
Break your bigger goals into smaller sections
It can be a little intimidating to achieve a big goal as it might seem out of reach. But, planning your goals with regular investments, such as investing in a mutual fund through a Systematic Investment Plan(SIP), can make it easier to achieve those goals.
You can talk to an expert who can help you figure out the amount you can save regularly.
Now dexterity, by definition, is building skills for a task, but here we mean to say that individuals should add skills to their savings and investment patterns. This dexterity gives an additional kick to your investments and keeps you excited. And the simplest thing to do is invest in the right products as per your risk-return profile and horizon. For instance, if you plan to buy a second home five years from now, you would be better off investing in hybrid mutual funds to generate a better return on your investments compared with the traditional instruments.
Another essential thing that individuals can do to be excited about savings is tracking the progress of their savings and investments. By doing this vital step, you can track where your savings are headed and feel connected to them. The former is essential since it helps you tweak your savings strategy basis your position in the financial journey, while the second aspect helps you remain connected with the original goal for which you were saving. This is important for you to remain not only updated on your savings but also excited for the end outcome.
It is also important to treat yourself with some reward to keep yourself motivated on the savings journey. Imagine it like the cheat day you binge on when you are on a strict regimen. That one day not only keeps you excited but also helps reduce the stress from the other days. In financial parlance, this cheat day could be the day you spend on things you want if you can achieve one leg of your financial savings journey. It would be better to plan and note these rewards so that you don’t go overboard with them.
The financial savings journey should not be an unknown and uncharted path leading you nowhere. Not only do investors not benefit from it, but they also usually tend to get astray from their goals. By adding excitement to their savings and investments, investors can keep themselves hooked on this financial journey while also aiming for their goals in a planned manner. Individuals can apply the methods detailed in the article to keep themselves motivated and excited about their savings.
This blog is purely for educational purposes and not to be treated as personal advice. Mutual fund investments are subject to market risks, read all scheme-related documents carefully.