How To Motivate Yourself To Save More Money?

Mon, Feb 9, 2009

Investment, Motivation

I believe, this is a very intriguing topic, for Mondays’ motivational post.

You see, many people including ME, loves to spend. Everytime, earn money, I love to splurge on everything that looks ATTRACTIVE to my eyes. nike sales @ singapore expo just over

shooping

Yes… I always advise my clients on the boundaries of “needs” and “wants”. Buy stuffs only, if you NEED it. Save 20% of your monthly income. Have 6 months savings of your monthly expenses for contingencies….Think savings as on a daily basis, makes it much EASIER for you to save….Savings is GOOD, spending is BAD…..dadadahhhh….

It is like script that I have rattled over 1001 times….preaching and at times lambasting others to do savings. Easier said than done. Period.

The question now is, “How do you exactly MOTIVATE yourself, to do more savings?”

The strategy that I am about to share with you, is a well known strategy that many who find it difficult to save money like me, contends that this is the BEST, “sure to work” strategy.

It is called “FORCED SAVINGS”! πŸ™‚

Most people, what they do, when they get their pay, is that they SPEND their money first, and then later, they SAVES.

spend_1st1

They spend their money, and then later at the end of the month, begin to kancheong question themselves, “Eh? Where all my money gone into?”.

Unfortunately, for many, the “balance” at the end of the month is too little or worst… they have a negative cashflow, taking GE loans, Courts loans, even worst….credit cards loans @ 24% interest per annum! πŸ™Β  –sigh, disappointment–

What you need to do is, save your money first, and the remaining, SPEND it! Get a regular savings plan, ie endowment plan or investment linked policy. (Note: Financial Advisors like us can do a risk profile analysis for you)

The money will be deducted every month automatically from your bank account. I did this, and NOW, whenever, I spend money, I can do so without feeling guilty.

Why? Because, I know that my savings, for the basic needs have been well taken care of! πŸ™‚

save1st

So remember, when you get your pay, SAVE your money 1st, and then later, you can SPEND the rest, without feeling guilty! πŸ™‚

 

p.s. By the way, if you wish to discoverΒ a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE,Β then please click here…

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- who has written 419 posts on The Official Helmi Hakim Website.

A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients' financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.

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7 Responses to “How To Motivate Yourself To Save More Money?”

  1. Suhaila Says:

    Hey helmi, I can so relate to this; I have repeated this to my clients, friends, family for 6021850210581049 times! Haha.. Thumbs up!

    Actually, it’s really common sense to save but when it comes to money, common sense disappears & emotions set in. We become possessive of the money when it goes into forced savings. It’s more a psychological & long term thinking more than anything.

    It will definitely help to list out your WANTS & NEEDS and the estimated amounts every month before your paycheck is credited to your bank account. Prioritise your NEEDS, before heading for your WANTS. Just like grocery shopping, you use it as a checklist. Have you gotten all the rice, oil, sugar, meat, vegetable before heading to get cheesecake, ice cream, candies, chocolate? Before wheeling to the counter, think, is what you have in your pocket enough to pay for your supermarket picks? If not, you’d definitely throw out the unnecessary candies, ice cream, etc..

    Same concept in budgeting. Once our bills are settled, credit loans paid up, liabilities taken care of, then we think about what and how much we wanna spend at that Nike sale @ Singapore Expo (hah! i cant put in a strikethrough here, helmi).

    At the end of the day, the big fat question is WHY?
    Why do I spend? Why do I save? Why do I spend so much? Why do I save so much? Why dont I have enough money to last me through the month?

    Why MUST we save? I say: WHY NOT?

    ps: going back to basics ah helmi.. gd.. =)

  2. Helmi Hakim Says:

    Suhaila >>> Thanks Suhaila for your comments.

    I always tell my clients that money and emotions CANNOT mixed.

    The only way to segregate emotions from money is through “forced savings” with a SPECIFIC objective.

    I personally have “forced savings” for
    1) Contigencies
    2) Marriage
    3) “Full” payment of 4 room HDB flat by age of 28
    4) Retirement
    5) Income replacement & assets protection (cash value life insurance policies)

    Think of it…. You can save or you can CHOOSE not to. These events will definitely come. How do you handle them, if you do not have any savings?

    Solution: “Forced savings” with a SPECIFIC objective! πŸ™‚

  3. Ifah Says:

    Ya lah you! Splurge on facial products!

    Hahaha. You also vain hor! πŸ˜›

    Okay random man. LOL.

  4. Helmi Hakim Says:

    Ifah >>> I spend on facial after “SAVING” my money.

    So, I spend my money without feeling guilty. When you don’t feel guilty, you don’t feel stressful. When you don’t feel stressful, pimple tak kluar.

    Logic eh? hahahhha…Jokerz!!! πŸ™‚

  5. Ifah Says:

    Hahahahaahah.

    Yelah Ustaz… πŸ˜›

  6. Suhail Says:

    Yes to saving BUT are we saving by Halal means??? Think…..

  7. priya Says:

    β€œFull” payment of 4 room HDB flat by age of 28

    Are you reaching this? If so, let me know how…pls.
    My aim is to make full payment by age of 30.


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