Like many people, the hardest part of actually saving for your retirement, is actually saving money. There are just so many things to spend it on and unless your earning millions each year, not enough money to do everything you want.
The typical saving strategy for most people across the UK is to leave School and start your first job, however it doesnt pay well and you end up spending every penny enjoying yourself. You twenty's is typically about saving for a house, your thirties about trying to pay for children, for your forties children and your house and your fifties, start thinking about retirement. The problem, by the time you're in your fifties, saving enough for retirement becomes very difficult.
It's very important that you save money throughout your working life. Here are 7 ways you trick yourself into saving.
Set Up Automatic Transfers
By setting up automatic transfers you won't even know the money is leaving your account until you see your statement. After setting up the transfer you won't have to lift another finger. You could even have the money come straight out of your pay check. You will soon adjust to the new amount you earn.
Give the Account An Important Name
A little psychological trick you can use is to give your account an important name. For example you might be more motivated to pay into an account that you label “My Dream Retirement in Australia.” If you tell your friends about the account name, and the name is memorable enough, they are likely to ask you about it, which will motivate you even more.
Keep the Your Account Out of Sight
Out of sight out of mind. If you forget about your saving account and there is still money going into it, you will feel you have won a windfall when you finally get the chance to spend it.
How do you do it? Just set up an an account to a different bank to your normal one and ask them to send you statements and correspondence by email. While you may not completely forget about the account, it should soon lose the importance it would have if you were constantly getting post about it through your door.
Download an App
Nowadays you can download all sorts of apps that help you save money. They have things like countdown timers and budgeting sheets to inspire and help you to save. You can even down money saving apps that help you to save for specific things such as holidays and pensions.
Make it Into a Competition
Perhaps you have a friend who's saving for something. Perhaps you are both saving for the same thing. Either way you can compete against each other to see who can earn the most
Give up a Habit
If you have a habit, such as smoking, and you want to give it up you could take this as your opportunity. Give up the habit and put the money you would spend on it into a saving account. It doesn't have to be a habit. You could cut out something in your life that you buy that is unnecessary like buying a magazine. Nowadays you can get magazines free online or loan them out at your local library. The same with books and DVDs.
Bank Any Extra Money
If you inherit some money, win some money, get a tax refund or a raise at work you should consider putting it straight into your savings account.